Palo Alto Networks Stock Buy Hold or Sell Recommendation

PANW Stock  USD 284.13  1.87  0.66%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Palo Alto Networks is 'Strong Sell'. Macroaxis provides Palo Alto buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PANW positions. The advice algorithm takes into account all of Palo Alto's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Palo Alto's buy or sell advice are summarized below:
Real Value
258.43
Target Price
279.77
Hype Value
282.27
Market Value
284.13
Naive Value
285.77
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Palo Alto Networks given historical horizon and risk tolerance towards Palo Alto. When Macroaxis issues a 'buy' or 'sell' recommendation for Palo Alto Networks, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Palo Alto Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Palo and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Palo Alto Networks. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.

Execute Palo Alto Buy or Sell Advice

The Palo recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Palo Alto Networks. Macroaxis does not own or have any residual interests in Palo Alto Networks or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Palo Alto's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Palo AltoBuy Palo Alto
Strong Sell

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Palo Alto Networks has a Mean Deviation of 1.97, Semi Deviation of 5.16, Standard Deviation of 4.16, Variance of 17.27, Downside Variance of 27.44 and Semi Variance of 26.59
Macroaxis provides advice on Palo Alto Networks to complement and cross-verify current analyst consensus on Palo Alto Networks. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Palo Alto is not overpriced, please check all Palo Alto Networks fundamentals, including its total debt, and the relationship between the revenue and price to earnings to growth . Given that Palo Alto Networks has a price to earning of (55.17) X, we recommend you to check out Palo Alto Networks market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Palo Alto Trading Alerts and Improvement Suggestions

Palo Alto Networks had very high historical volatility over the last 90 days
The company currently holds 2.27 B in liabilities. Palo Alto Networks has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Palo Alto until it has trouble settling it off, either with new capital or with free cash flow. So, Palo Alto's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Palo Alto Networks sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Palo to invest in growth at high rates of return. When we think about Palo Alto's use of debt, we should always consider it together with cash and equity.
Palo Alto Networks has a strong financial position based on the latest SEC filings
Over 85.0% of the company shares are owned by institutional investors
Latest headline from accesswire.com: Class Action Filed Against Palo Alto Networks Inc. Seeking Recovery for Investors - Contact Levi Korsinsky

Palo Alto Returns Distribution Density

The distribution of Palo Alto's historical returns is an attempt to chart the uncertainty of Palo Alto's future price movements. The chart of the probability distribution of Palo Alto daily returns describes the distribution of returns around its average expected value. We use Palo Alto Networks price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Palo Alto returns is essential to provide solid investment advice for Palo Alto.
Mean Return
0.01
Value At Risk
-2.62
Potential Upside
5.22
Standard Deviation
4.16
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Palo Alto historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Palo Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Palo Alto is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Palo Alto Networks backward and forwards among themselves. Palo Alto's institutional investor refers to the entity that pools money to purchase Palo Alto's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Nuveen Asset Management, Llc2023-12-31
M
Northern Trust Corp2023-12-31
3.4 M
Ameriprise Financial Inc2023-12-31
3.3 M
Clearbridge Advisors, Llc2023-12-31
3.1 M
Amvescap Plc.2023-12-31
3.1 M
Royal Bank Of Canada2023-12-31
3.1 M
Legal & General Group Plc2023-12-31
M
Barclays Plc2023-12-31
2.9 M
Jennison Associates Llc2023-12-31
2.6 M
Vanguard Group Inc2023-12-31
27.6 M
Blackrock Inc2023-12-31
24.6 M
Note, although Palo Alto's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Palo Alto Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(353.1M)(448.8M)(327.6M)(1.1B)(964.4M)(916.2M)
Change In Cash2.0B(1.1B)244.7M(982.6M)(884.3M)(840.1M)
Free Cash Flow821.3M1.4B1.8B2.6B3.0B3.2B
Depreciation253.5M304.9M282.6M282.2M324.5M340.8M
Other Non Cash Items325.2M440.8M437.2M(1.5B)(1.3B)(1.3B)
Capital Expenditures214.4M116M192.8M146.3M168.2M93.2M
Net Income(81.9M)(267M)(498.9M)439.7M395.7M415.5M
End Period Cash Flow3.0B1.9B2.1B1.1B1.3B1.1B
Investments771.9M(587.3M)(1.2B)(2.6B)(2.4B)(2.3B)
Change Receivables(435.6M)(172.4M)(902M)(1.1B)(953.1M)(905.4M)
Dividends Paid(2.3B)(104M)(136.6M)(258.8M)(232.9M)(244.6M)
Change To Netincome658.4M907.5M1.0B1.1B1.2B1.3B
Net Borrowings2.0B(900K)(600K)(1.7B)(1.5B)(1.4B)

Palo Alto Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Palo Alto or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Palo Alto's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Palo stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.02
β
Beta against NYSE Composite0.17
σ
Overall volatility
4.32
Ir
Information ratio -0.03

Palo Alto Volatility Alert

Palo Alto Networks exhibits above-average semi-deviation for your current time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Palo Alto's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Palo Alto's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Palo Alto Implied Volatility

Palo Alto's implied volatility exposes the market's sentiment of Palo Alto Networks stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Palo Alto's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Palo Alto stock will not fluctuate a lot when Palo Alto's options are near their expiration.

Palo Alto Fundamentals Vs Peers

Comparing Palo Alto's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Palo Alto's direct or indirect competition across all of the common fundamentals between Palo Alto and the related equities. This way, we can detect undervalued stocks with similar characteristics as Palo Alto or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Palo Alto's fundamental indicators could also be used in its relative valuation, which is a method of valuing Palo Alto by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Palo Alto to competition
FundamentalsPalo AltoPeer Average
Return On Equity0.9-0.31
Return On Asset0.0309-0.14
Profit Margin0.30 %(1.27) %
Operating Margin0.12 %(5.51) %
Current Valuation90.02 B16.62 B
Shares Outstanding323.1 M571.82 M
Shares Owned By Insiders1.12 %10.09 %
Shares Owned By Institutions84.75 %39.21 %
Number Of Shares Shorted13.43 M4.71 M
Price To Earning(55.17) X28.72 X
Price To Book20.93 X9.51 X
Price To Sales12.12 X11.42 X
Revenue6.89 B9.43 B
Gross Profit3.78 B27.38 B
EBITDA593.5 M3.9 B
Net Income439.7 M570.98 M
Cash And Equivalents3.63 B2.7 B
Cash Per Share12.15 X5.01 X
Total Debt2.27 B5.32 B
Current Ratio0.77 X2.16 X
Book Value Per Share13.50 X1.93 K
Cash Flow From Operations2.78 B971.22 M
Short Ratio1.64 X4.00 X
Earnings Per Share6.46 X3.12 X
Price To Earnings To Growth1.28 X4.89 X
Target Price336.71
Number Of Employees14.79 K18.84 K
Beta1.21-0.15
Market Capitalization91.2 B19.03 B
Total Asset14.5 B29.47 B
Retained Earnings(1.23 B)9.33 B
Working Capital(1.69 B)1.48 B
Current Asset1.77 B9.34 B
Note: Sale by Nir Zuk of 5300 shares of Palo Alto [view details]

Palo Alto Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Palo . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Palo Alto Buy or Sell Advice

When is the right time to buy or sell Palo Alto Networks? Buying financial instruments such as Palo Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Current Liabilities860.3M939.1M1.1B1.1B
Total Assets12.3B14.5B16.7B17.5B

Use Investing Ideas to Build Portfolios

In addition to having Palo Alto in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Aircraft
Aircraft Theme
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When determining whether Palo Alto Networks is a strong investment it is important to analyze Palo Alto's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Palo Alto's future performance. For an informed investment choice regarding Palo Stock, refer to the following important reports:
Check out Palo Alto Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.

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Is Palo Alto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Palo Alto. If investors know Palo will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Palo Alto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
18.56
Earnings Share
6.46
Revenue Per Share
24.27
Quarterly Revenue Growth
0.193
Return On Assets
0.0309
The market value of Palo Alto Networks is measured differently than its book value, which is the value of Palo that is recorded on the company's balance sheet. Investors also form their own opinion of Palo Alto's value that differs from its market value or its book value, called intrinsic value, which is Palo Alto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Palo Alto's market value can be influenced by many factors that don't directly affect Palo Alto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Palo Alto's value and its price as these two are different measures arrived at by different means. Investors typically determine if Palo Alto is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Palo Alto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.