Cybersecurity Leader Palo Alto Nearing Highs Again

Palo Alto helps secure technology and networks for enterprises, service providers, and governments. Its main markets are the U.S. and Israel, though it serves customers throughout the world. PANW’s platforms focus on cloud security, network security, and security operations, and the company is integrating AI functionality into each one.

On the financial front, PANW generated $8 billion in revenue in fiscal 2024, which was a 16% increase from the year before and pales in comparison to the 25% growth it delivered in 2022. However, much of that revenue lag is because the company waived fees for certain periods. Blips aside, PANW’s annual recurring revenue for next-generation security customers in the fourth quarter of fiscal 2024 rose 43% to $4.2 billion. The company thinks this figure can climb to $15 billion by 2030. So, growth prospects are stellar.

It’s no wonder PANW shares are up 24% this 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 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 +14.9%.

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, with more potentially on the horizon. The blue bars below show when PANW was a top pick…sending share values up:

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.