AI, Platform Consolidation, Big Money Lift Palo Alto

Palo Alto helps secure the technology and network environments for enterprises, service providers, and governments. While the U.S. and Israel are its core markets, PANW serves customers around the world with platforms that focus on cloud security, network security, and security operations. The company’s continued integration of AI functionality and its tool consolidation efforts, known as “platformization,” are reaping benefits.

On the financial front, PANW’s second-quarter fiscal 2025 results showed 14% total revenue growth, to nearly $2.3 billion. Per-share earnings were $0.38, and the company maintained a gross margin of 76.6%. While guidance didn’t fully impress analysts, it was raised for fiscal 2025 to a top range of nearly $9.2 billion in revenue and non-GAAP EPS of up to $3.24.

It’s no wonder PANW shares are up almost 25% in a year – and they could rise more. MAPsignals data shows how a rare bullish signal reflects Big Money investors are betting heavily on the forward picture of the stock.

Big Money Locks Up Palo Alto

Institutional volumes reveal plenty. In the last year, PANW has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in PANW shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Palo Alto.

Palo Alto Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, PANW has had strong sales and earnings growth:

• 3-year sales growth rate (+23.7%)
• 3-year earnings growth rate (+252.2%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +13.6%.

Now it makes sense why the stock has been powering to new heights. PANW has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Palo Alto has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last two years, including recently, with more potentially on the horizon. The blue bars below show when PANW was a top pick…rising higher with Big Money support:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Palo Alto Price Prediction

The PANW rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in PANW at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.