Cybersecurity platform provider Palo Alto Networks (NASDAQ:PANW) will be announcing earnings results this Monday after market hours. Here’s what investors should know.
Software is rapidly reducing operating expenses for businesses. Companies bringing it to life have been rewarded with high valuation multiples that make fundraising easier,
but they have weighed on the returns lately as the industry has pulled back by 12.3% over the past six months. This drop is a noticeable divergence from the S&P 500’s 5.5% return.
Shares of cybersecurity provider Palo Alto Networks (NASDAQ:PANW)
jumped 3.3% in the pre-market session after it received rating upgrades from two prominent Wall Street analysts, Piper Sandler and Deutsche Bank. Both Piper Sandler and Deutsche Bank upgraded Palo Alto Networks to a "Buy" rating from "Hold." Piper Sandler raised its price target to $225, with the firm expecting the company's push to sell integrated security products to drive a rebound in bookings and accelerate growth into late 2025. Similarly, Deutsche Bank increased its price forecast for the stock to $220. This wave of optimism from Wall Street comes just days before the cybersecurity company is scheduled to report its fourth-quarter earnings on August 18.
A number of stocks jumped in the afternoon session after cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.
Over the past six months, Palo Alto Networks’s shares (currently trading at $167.03) have posted a disappointing 15% loss, well below the S&P 500’s 5.3% gain. This may have investors wondering how to approach the situation.
Jenny Harrington picks FLEX LNG as final trade with 10% year-to-date gain, 12% dividend yield and 13 times earnings. Stephanie Link chooses Palo Alto Networks. Joshua Brown goes for Apple's $100 billion commitment to U.S. manufacturing.
The global financial landscape stands at a pivotal juncture, characterized by a complex interplay of economic shifts, technological advancements, and geopolitical realignments. Investors and businesses alike are grappling with unprecedented uncertainty, necessitating a forward-looking perspective and a robust strategy to navigate the evolving market dynamics. The immediate implications point towards
Over the last six months, Palo Alto Networks’s shares have sunk to $168.75, producing a disappointing 9.9% loss - a stark contrast to the S&P 500’s 3.6% gain. This may have investors wondering how to approach the situation.
