Palo Alto Networks (NYSE:PANW)

CAPS Rating: 3 out of 5 57.83

PANW News and Commentary

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All Players

275 Outperform
26 Underperform
 

All-Star Players

59 Outperform
7 Underperform
 

Wall Street

18 Outperform
0 Underperform
 

Top PANW Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

tj99 (90.09)
Submitted March 05, 2015

PANW seems to be considered the best of this industry, and reputation will matter more in cybersecurity than many other businesses. Seems to be broader-based/more established than FEYE, so I choose Palo Alto first.

FreeFlyingFool (96.42)
Submitted July 20, 2012

I like the company, and the technology is interesting. However, the initial price is awfully high and there's a very large options overhang (about 15M options out vs. 67M shares outstanding). Also, you're seeing pretty much everybody in the… More

PANW VS S&P 500 (SPY)

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Recent Community Commentary

Read the most recent pitches from players about PANW.

Recs

0
Member Avatar ROEoutshinesGOLD (99.82) Submitted: 12/4/2017 2:56:53 PM : Outperform Start Price: $183.31 PANW Score: -54.53

🆚 = (FEYE) < (PANW)

Forget FireEye, Palo Alto Networks Is a Better Cybersecurity Stock - The Motley Fool
https://apple.news/ALoax_-MNP4yywho1uEswcA
Leo Sun (TMFSunLion) Dec 4, 2017:
‘‘‘
Palo Alto Networks (NYSE:PANW) and FireEye (NASDAQ:FEYE) are often mentioned as "best in breed" cybersecurity companies. Palo Alto, which provides next-gen firewalls, serves over 45,000 customers in more than 150 countries. FireEye, a pioneer in threat detection solutions, serves 5,800 customers in 67 countries.

Yet Palo Alto's stock has more than tripled since its IPO in 2012, while FireEye's stock remains almost 30% below its 2013 IPO price. Investors seem to believe that Palo Alto is a better cybersecurity stock than FireEye, and I think they're right — for four simple reasons.

1. Better revenue growth:

Palo Alto's revenue rose 49% in fiscal 2016 and 28% in 2017, and analysts anticipate 23% growth this year. The company's growth is decelerating, but its growth figures are robust for a 12-year-old company. They also counter the bearish notion that bigger players like Cisco could render it obsolete with bundled firewalls.

• Palo Alto attributes that growth to its "land-and-expand" model, in which it secures firewall customers before selling them additional services. It's also been promoting a newer hybrid cloud SaaS (software as a service) platform that generates more subscription-based revenues.

• FireEye's revenue rose 46% in fiscal 2015 and 15% in 2016, and analysts expect just 4% growth this year. FireEye attributed that slowdown to a shift from on-site appliances, which generate higher initial revenues, toward cloud-based services, which generate more sustainable subscription-based revenues. […]

2. Better earnings growth:

[…] FireEye's bottom line improvements are encouraging, but Palo Alto still has much higher margins thanks to its superior scale and the growth of its higher-margin SaaS platform.

3. Stronger cash flows:

[…] Palo Alto is now sitting on a comfortable cash cushion — its cash and equivalents rose 13% sequentially to $843 million last quarter. FireEye's cash position rose just 4% sequentially to $161 million last quarter. Palo Alto's free cash flow remains much stronger than FireEye's, which remains deep in the red.

4. Avoiding negative headlines […]

The bottom line
As the number of data breaches rises worldwide, demand for cybersecurity services will inevitably grow. That's why research firm Markets and Markets expects the global cybersecurity market to grow from $138 billion this year to $232 billion in 2022.

Investors should know how to separate more promising cybersecurity stocks, like Palo Alto, from potential losers like FireEye. Palo Alto is still firing on all cylinders, while FireEye is scrambling to cut costs amid declining revenues — so it's clear that the former is a better long-term security play than the latter.
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Recs

0
Member Avatar timbrugger (27.33) Submitted: 10/11/2017 9:38:24 AM : Underperform Start Price: $149.42 PANW Score: +7.06

Analyst darling, but revenue growth is slowing though spending remains sky-high. Wild fluctuations in share price which I'm not a fan of. Better for short-term investors, which I am most certainly not.

Recs

0
Member Avatar shamojo (26.59) Submitted: 10/7/2017 6:13:40 PM : Outperform Start Price: $147.60 PANW Score: -5.80

Measured over the past 5 years, PANW shows a very strong growth in Revenue. The Revenue has been growing by 47.17% on average per year.

The Earnings Per Share is expected to grow by 105.06% on average over the next 2 years.

Leaderboard

Find the members with the highest scoring picks in PANW.

Score Leader

jlong8896

jlong8896 (< 20) Score: +273.59

The Score Leader is the player with the highest score across all their picks in PANW.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
redsammy 61.72 11/11/2013 Outperform 1Y $40.97 +254.97% +49.92% +205.05 0 Comment
taobabe < 20 11/12/2013 Outperform 5Y $41.87 +247.34% +50.14% +197.20 1 Comment
monk217 41.40 11/18/2013 Outperform 5Y $44.80 +224.62% +47.65% +176.97 0 Comment
TMFCaccamise 93.04 11/18/2013 Outperform 5Y $45.24 +221.46% +47.56% +173.91 0 Comment
TMFTypeoh 85.71 11/18/2013 Outperform 5Y $45.29 +221.11% +47.45% +173.66 1 Comment
pedoma 27.99 10/1/2013 Outperform 5Y $44.92 +223.75% +57.27% +166.48 0 Comment
Mibirney 36.60 9/27/2013 Outperform 5Y $46.55 +212.42% +57.34% +155.07 0 Comment
wildnatives 73.24 7/15/2013 Outperform 5Y $46.84 +210.48% +58.16% +152.32 0 Comment
JSergeant 67.94 12/3/2013 Outperform 5Y $48.94 +197.16% +47.64% +149.52 0 Comment
zo6racer 61.45 7/24/2013 Outperform 1Y $48.45 +200.17% +57.70% +142.47 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackCowenandCo 85.89 7/6/2015 Outperform NS $173.63 -16.24% +29.11% -45.35 0 Comment
TrackJimCramer 85.10 2/17/2015 Outperform 3W $136.89 +6.24% +26.44% -20.20 0 Comment
TrackJimCramer 85.10 10/24/2014 Underperform 3W $108.06 +26.68% +6.96% -19.72 2/17/2015 @ $136.89 0 Comment
TrackJanney 82.40 9/22/2014 Outperform NS $99.51 +46.15% +32.60% +13.55 0 Comment
TrackRothCapital 69.83 9/11/2014 Outperform NS $98.22 +48.07% +33.32% +14.75 0 Comment
TrackUBS 91.91 9/10/2014 Outperform NS $94.78 +53.45% +33.21% +20.24 0 Comment
TrackImperialCap < 20 8/15/2014 Outperform NS $87.22 +66.74% +35.22% +31.52 0 Comment
TrackOppenheimer 52.18 5/29/2014 Outperform NS $76.40 +90.35% +38.49% +51.86 0 Comment
tracknomura 97.73 5/27/2014 Outperform NS $68.45 +112.46% +39.05% +73.41 0 Comment
TrackBarclaysCap 90.59 4/14/2014 Outperform NS $66.75 +117.87% +45.22% +72.65 0 Comment
TrackFBRCapitalM 88.33 3/25/2014 Outperform NS $75.00 +93.91% +42.54% +51.36 0 Comment
TrackWellsFargo 90.31 2/3/2014 Outperform NS $60.91 +138.76% +49.29% +89.47 0 Comment
trackpacificcres 58.82 5/29/2013 Outperform NS $54.46 +167.04% +60.60% +106.44 0 Comment
TrackNorthlandSe < 20 3/7/2013 Outperform NS $57.10 +154.69% +71.73% +82.97 0 Comment
TrackTopeka < 20 1/4/2013 Outperform NS $49.84 +191.79% +82.00% +109.80 0 Comment
TrackJMP 83.08 10/2/2012 Outperform NS $61.40 +136.86% +83.31% +53.54 0 Comment
TrackCreditSuiss 90.58 9/12/2012 Outperform NS $67.68 +114.88% +83.99% +30.89 0 Comment
TrackJimCramer 85.10 9/7/2012 Outperform 3W $70.74 +52.76% +36.10% +16.66 10/24/2014 @ $108.06 0 Comment
TrackGoldmanSach 77.70 8/14/2012 Outperform NS $64.13 +126.77% +88.02% +38.75 0 Comment
TrackUltraLong < 20 8/6/2012 Outperform NS $55.70 +161.10% +90.14% +70.96 1 Comment

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