Track market-moving stories before they get noisy

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Let's take a look at what these Wall Street heavyweights have to say about Palo Alto Networks (PANW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Palo Alto currently has an average brokerage recommendation (ABR) of 1.47, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 55 brokerage firms. An ABR of 1.47 approximates between Strong Buy and Buy.

Of the 55 recommendations that derive the current ABR, 41 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 74.6% and 5.5% of all recommendations.

Brokerage Recommendation Trends for PANW

Check price target & stock forecast for Palo Alto here>>>

The ABR suggests buying Palo Alto, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is PANW a Good Investment?In terms of earnings estimate revisions for Palo Alto, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $3.77.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Palo Alto. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Palo Alto.

Aureus Asset Management LLC grew its stake in shares of Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report) by 267.0% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 8,404 shares of the network technology company’s stock after acquiring an additional 6,114 shares during the period. Aureus Asset Management LLC’s holdings in Palo Alto Networks were worth $1,347,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Norges Bank acquired a new position in shares of Palo Alto Networks during the 4th quarter worth $1,415,364,000. Vanguard Group Inc. lifted its stake in Palo Alto Networks by 4.1% in the 4th quarter. Vanguard Group Inc. now owns 67,929,063 shares of the network technology company’s stock valued at $12,512,533,000 after buying an additional 2,659,100 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. lifted its stake in Palo Alto Networks by 1,665.1% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 2,761,909 shares of the network technology company’s stock valued at $442,788,000 after buying an additional 2,605,433 shares in the last quarter. Bank of America Corp DE grew its holdings in Palo Alto Networks by 11.9% during the 4th quarter. Bank of America Corp DE now owns 19,375,486 shares of the network technology company’s stock valued at $3,568,964,000 after buying an additional 2,065,776 shares during the last quarter. Finally, Employees Provident Fund Board acquired a new stake in Palo Alto Networks during the 4th quarter valued at $281,542,000. Institutional investors and hedge funds own 79.82% of the company’s stock.

Wall Street Analysts Forecast Growth A number of equities analysts have recently weighed in on PANW shares. Weiss Ratings cut Palo Alto Networks from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, June 4th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $330.00 price objective on shares of Palo Alto Networks in a research note on Wednesday, June 3rd. Wedbush lifted their price objective on Palo Alto Networks from $300.00 to $340.00 and gave the stock an “outperform” rating in a research report on Wednesday, June 3rd. Loop Capital boosted their target price on shares of Palo Alto Networks from $160.00 to $290.00 and gave the company a “hold” rating in a research note on Wednesday, June 3rd. Finally, Mizuho upped their target price on shares of Palo Alto Networks from $265.00 to $305.00 and gave the company an “outperform” rating in a report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $331.48.

Read Our Latest Report on PANW

Insider Buying and Selling at Palo Alto Networks In related news, EVP Dipak Golechha sold 5,000 shares of the company’s stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $289.56, for a total transaction of $1,447,800.00. Following the completion of the sale, the executive vice president directly owned 145,250 shares of the company’s stock, valued at approximately $42,058,590. This represents a 3.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director James J. Goetz sold 20,000 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $279.90, for a total value of $5,598,000.00. Following the completion of the sale, the director owned 20,000 shares of the company’s stock, valued at approximately $5,598,000. This represents a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 101,239 shares of company stock worth $27,174,360. Corporate insiders own 1.40% of the company’s stock.

Key Headlines Impacting Palo Alto Networks Here are the key news stories impacting Palo Alto Networks this week:

Positive Sentiment: Analysts and commentators continue to highlight Palo Alto Networks as a key beneficiary of rising AI-driven cybersecurity spending, with Morgan Stanley saying sentiment on software stocks may be too negative and Barron’s arguing PANW could be a major winner in the new AI era. Article: Morgan Stanley Analysts Say Sentiment Has Gotten ‘Too Negative’ on Software Stocks. These Are Their Picks Positive Sentiment: Market watchers are also pointing to broader enterprise demand for cybersecurity as AI agents proliferate, which could support future security product spending and reinforce PANW’s growth narrative. Article: Citi Wealth CIO Warns “Infinite AI Agents” Will Accelerate Cybersecurity’s Share of Enterprise Spending Positive Sentiment: Palo Alto Networks announced it will acquire Embrace to extend its observability platform with Real User Monitoring and Synthetics, a move aimed at improving digital experience monitoring and AI-driven operations. Investors may see this as an expansion into a higher-value adjacent market. Article: Palo Alto Networks to Extend Leading Observability Platform with Innovative Digital Experience Monitoring Neutral Sentiment: Another brief note flagged PANW as a cybersecurity stock to follow, but did not add any new catalyst beyond the broader sector interest. Article: Cybersecurity Stocks To Follow Now – July 20th Negative Sentiment: Despite the upbeat long-term themes, one article noted PANW had slipped intraday, suggesting some investors are still taking profits or reacting to overall software sector weakness. Article: Palo Alto slips 3%: Why this analyst still sees it as a top cyber pick Palo Alto Networks Trading Down 2.0% PANW stock opened at $335.28 on Thursday. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.04. The company has a market cap of $273.25 billion, a price-to-earnings ratio of 274.82, a PEG ratio of 12.70 and a beta of 0.91. The business has a fifty day simple moving average of $297.43 and a 200-day simple moving average of $215.80. Palo Alto Networks, Inc. has a 52 week low of $139.57 and a 52 week high of $368.80.

Palo Alto Networks (NASDAQ:PANW – Get Free Report) last issued its earnings results on Tuesday, June 2nd. The network technology company reported $0.85 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.06. The firm had revenue of $3 billion for the quarter, compared to analysts’ expectations of $2.94 billion. Palo Alto Networks had a return on equity of 10.53% and a net margin of 7.95%.The firm’s revenue for the quarter was up 31.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.37 earnings per share. Palo Alto Networks has set its FY 2026 guidance at 3.770-3.790 EPS and its Q4 2026 guidance at 0.960-0.980 EPS. On average, equities research analysts expect that Palo Alto Networks, Inc. will post 2.03 EPS for the current year.

Palo Alto Networks Company Profile (Free Report)

Palo Alto Networks (NASDAQ: PANW) is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company’s product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.

See Also Five stocks we like better than Palo Alto Networks Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding PANW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report).

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Posted by Defense World Staff on Jul 23rd, 2026

Alamar Capital Management LLC purchased a new position in shares of Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 12,209 shares of the network technology company’s stock, valued at approximately $1,957,000. Palo Alto Networks comprises approximately 1.2% of Alamar Capital Management LLC’s portfolio, making the stock its 28th largest position.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of PANW. Janney Montgomery Scott LLC raised its position in shares of Palo Alto Networks by 15.0% during the first quarter. Janney Montgomery Scott LLC now owns 410,401 shares of the network technology company’s stock worth $65,796,000 after purchasing an additional 53,485 shares during the period. Aviva PLC lifted its holdings in shares of Palo Alto Networks by 5.4% during the 4th quarter. Aviva PLC now owns 568,804 shares of the network technology company’s stock valued at $104,774,000 after purchasing an additional 29,230 shares in the last quarter. Granite Islands Private Wealth LLC grew its position in shares of Palo Alto Networks by 43.6% in the 1st quarter. Granite Islands Private Wealth LLC now owns 15,342 shares of the network technology company’s stock valued at $2,453,000 after purchasing an additional 4,659 shares during the period. Peapack Gladstone Financial Corp grew its position in shares of Palo Alto Networks by 8.8% in the 4th quarter. Peapack Gladstone Financial Corp now owns 48,458 shares of the network technology company’s stock valued at $8,926,000 after purchasing an additional 3,926 shares during the period. Finally, Oak Thistle LLC bought a new stake in Palo Alto Networks during the 4th quarter worth approximately $1,554,000. 79.82% of the stock is owned by institutional investors and hedge funds.

Palo Alto Networks Price Performance NASDAQ:PANW opened at $335.28 on Thursday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.86 and a current ratio of 0.86. The stock’s 50-day simple moving average is $297.43 and its 200 day simple moving average is $215.80. The company has a market cap of $273.25 billion, a P/E ratio of 274.82, a P/E/G ratio of 12.70 and a beta of 0.91. Palo Alto Networks, Inc. has a 52-week low of $139.57 and a 52-week high of $368.80.

Palo Alto Networks (NASDAQ:PANW – Get Free Report) last issued its quarterly earnings results on Tuesday, June 2nd. The network technology company reported $0.85 EPS for the quarter, beating the consensus estimate of $0.79 by $0.06. The firm had revenue of $3 billion during the quarter, compared to analysts’ expectations of $2.94 billion. Palo Alto Networks had a return on equity of 10.53% and a net margin of 7.95%.The business’s quarterly revenue was up 31.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.37 earnings per share. Palo Alto Networks has set its FY 2026 guidance at 3.770-3.790 EPS and its Q4 2026 guidance at 0.960-0.980 EPS. As a group, sell-side analysts forecast that Palo Alto Networks, Inc. will post 2.03 EPS for the current fiscal year.

Key Palo Alto Networks News Here are the key news stories impacting Palo Alto Networks this week:

Positive Sentiment: Analysts and commentators continue to highlight Palo Alto Networks as a key beneficiary of rising AI-driven cybersecurity spending, with Morgan Stanley saying sentiment on software stocks may be too negative and Barron’s arguing PANW could be a major winner in the new AI era. Article: Morgan Stanley Analysts Say Sentiment Has Gotten ‘Too Negative’ on Software Stocks. These Are Their Picks Positive Sentiment: Market watchers are also pointing to broader enterprise demand for cybersecurity as AI agents proliferate, which could support future security product spending and reinforce PANW’s growth narrative. Article: Citi Wealth CIO Warns “Infinite AI Agents” Will Accelerate Cybersecurity’s Share of Enterprise Spending Positive Sentiment: Palo Alto Networks announced it will acquire Embrace to extend its observability platform with Real User Monitoring and Synthetics, a move aimed at improving digital experience monitoring and AI-driven operations. Investors may see this as an expansion into a higher-value adjacent market. Article: Palo Alto Networks to Extend Leading Observability Platform with Innovative Digital Experience Monitoring Neutral Sentiment: Another brief note flagged PANW as a cybersecurity stock to follow, but did not add any new catalyst beyond the broader sector interest. Article: Cybersecurity Stocks To Follow Now – July 20th Negative Sentiment: Despite the upbeat long-term themes, one article noted PANW had slipped intraday, suggesting some investors are still taking profits or reacting to overall software sector weakness. Article: Palo Alto slips 3%: Why this analyst still sees it as a top cyber pick Insiders Place Their Bets In other Palo Alto Networks news, Director Helle Thorning-Schmidt sold 700 shares of the company’s stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $346.85, for a total value of $242,795.00. Following the transaction, the director directly owned 5,898 shares in the company, valued at $2,045,721.30. The trade was a 10.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Josh D. Paul sold 900 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $345.00, for a total transaction of $310,500.00. Following the completion of the transaction, the chief accounting officer directly owned 79,644 shares in the company, valued at $27,477,180. The trade was a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 101,239 shares of company stock worth $27,174,360 in the last quarter. Company insiders own 1.40% of the company’s stock.

Analyst Upgrades and Downgrades Several analysts have commented on PANW shares. Deutsche Bank Aktiengesellschaft raised their target price on shares of Palo Alto Networks from $220.00 to $350.00 and gave the stock a “buy” rating in a report on Wednesday, June 3rd. Truist Financial upped their target price on shares of Palo Alto Networks from $275.00 to $375.00 and gave the stock a “buy” rating in a research note on Wednesday, June 3rd. Wolfe Research reissued an “outperform” rating and issued a $320.00 price target on shares of Palo Alto Networks in a research note on Wednesday, June 3rd. Capital One Financial set a $421.00 price objective on Palo Alto Networks and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Finally, BNP Paribas Exane increased their price objective on Palo Alto Networks from $330.00 to $380.00 and gave the stock an “outperform” rating in a report on Wednesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, forty have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $331.48.

Read Our Latest Research Report on PANW

Palo Alto Networks Profile (Free Report)

Palo Alto Networks (NASDAQ: PANW) is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company’s product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.

Featured Stories Five stocks we like better than Palo Alto Networks Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

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Posted by Defense World Staff on Jul 22nd, 2026

Andra AP fonden lessened its stake in shares of Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report) by 11.9% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 92,040 shares of the network technology company’s stock after selling 12,400 shares during the quarter. Andra AP fonden’s holdings in Palo Alto Networks were worth $14,756,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the company. Brighton Jones LLC lifted its holdings in Palo Alto Networks by 147.7% in the 4th quarter. Brighton Jones LLC now owns 6,761 shares of the network technology company’s stock worth $1,230,000 after buying an additional 4,031 shares during the period. Bison Wealth LLC grew its position in shares of Palo Alto Networks by 169.1% in the 4th quarter. Bison Wealth LLC now owns 5,212 shares of the network technology company’s stock worth $948,000 after buying an additional 3,275 shares during the last quarter. Sivia Capital Partners LLC increased its stake in shares of Palo Alto Networks by 66.3% during the second quarter. Sivia Capital Partners LLC now owns 3,484 shares of the network technology company’s stock valued at $713,000 after buying an additional 1,389 shares during the period. Osterweis Capital Management Inc. raised its holdings in shares of Palo Alto Networks by 11,100.0% during the second quarter. Osterweis Capital Management Inc. now owns 560 shares of the network technology company’s stock valued at $115,000 after acquiring an additional 555 shares in the last quarter. Finally, Main Street Financial Solutions LLC raised its holdings in shares of Palo Alto Networks by 6.0% during the second quarter. Main Street Financial Solutions LLC now owns 4,398 shares of the network technology company’s stock valued at $900,000 after acquiring an additional 249 shares in the last quarter. 79.82% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In A number of analysts recently commented on the company. Morgan Stanley reaffirmed an “overweight” rating and issued a $387.00 price target (up from $320.00) on shares of Palo Alto Networks in a research note on Tuesday. Mizuho upped their price objective on shares of Palo Alto Networks from $265.00 to $305.00 and gave the stock an “outperform” rating in a report on Wednesday, June 3rd. Evercore reaffirmed an “outperform” rating and issued a $415.00 target price on shares of Palo Alto Networks in a research report on Wednesday, July 8th. FBN Securities reiterated an “outperform” rating on shares of Palo Alto Networks in a research report on Wednesday, July 1st. Finally, Stifel Nicolaus set a $340.00 price target on shares of Palo Alto Networks in a research note on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $331.48.

Read Our Latest Research Report on PANW

Palo Alto Networks Stock Performance Palo Alto Networks stock opened at $342.15 on Wednesday. Palo Alto Networks, Inc. has a twelve month low of $139.57 and a twelve month high of $368.80. The company has a quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $278.85 billion, a P/E ratio of 280.45, a PEG ratio of 12.95 and a beta of 0.91. The stock’s 50 day moving average is $295.28 and its 200 day moving average is $214.74.

Palo Alto Networks (NASDAQ:PANW – Get Free Report) last announced its quarterly earnings data on Tuesday, June 2nd. The network technology company reported $0.85 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.06. Palo Alto Networks had a return on equity of 10.53% and a net margin of 7.95%.The business had revenue of $3 billion during the quarter, compared to analysts’ expectations of $2.94 billion. During the same quarter in the previous year, the business earned $0.37 earnings per share. The firm’s quarterly revenue was up 31.1% compared to the same quarter last year. Palo Alto Networks has set its FY 2026 guidance at 3.770-3.790 EPS and its Q4 2026 guidance at 0.960-0.980 EPS. On average, equities research analysts predict that Palo Alto Networks, Inc. will post 2.03 earnings per share for the current fiscal year.

Trending Headlines about Palo Alto Networks Here are the key news stories impacting Palo Alto Networks this week:

Positive Sentiment: J.P. Morgan-style rotation into cybersecurity is showing up in the news flow, with multiple commentators arguing that AI-driven security demand should benefit PANW as enterprises spend more to protect themselves from increasingly powerful AI tools. Why Palo Alto Stock Can Be a Big Winner in Cybersecurity’s New AI Era Positive Sentiment: Morgan Stanley said sentiment on software stocks has become “too negative,” and named high-profile names like PANW as potential rebound candidates if investors rotate back into quality software leaders. Morgan Stanley Analysts Say Sentiment Has Gotten ‘Too Negative’ on Software Stocks. These Are Their Picks Positive Sentiment: Citi Wealth’s CIO highlighted cybersecurity as a favored theme, saying “infinite AI agents” could drive more enterprise spending on security, which reinforces the bull case for PANW. Citi Wealth CIO Warns “Infinite AI Agents” Will Accelerate Cybersecurity’s Share of Enterprise Spending Positive Sentiment: Palo Alto Networks announced it intends to acquire Embrace to expand its observability platform with digital experience monitoring, adding real-user monitoring and synthetics tools that could broaden its product offering and deepen customer value. Palo Alto Networks to Extend Leading Observability Platform with Innovative Digital Experience Monitoring Neutral Sentiment: One market note said PANW had slipped recently alongside broader software weakness, suggesting investor caution may still be weighing on the shares. Palo Alto Networks (PANW) Sees a More Significant Dip Than Broader Market: Some Facts to Know Insider Activity In related news, EVP Lee Klarich sold 62,904 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $258.65, for a total transaction of $16,270,119.60. Following the sale, the executive vice president directly owned 235,983 shares of the company’s stock, valued at approximately $61,037,002.95. This represents a 21.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Josh D. Paul sold 1,100 shares of Palo Alto Networks stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $285.08, for a total transaction of $313,588.00. Following the completion of the transaction, the chief accounting officer directly owned 81,636 shares of the company’s stock, valued at $23,272,790.88. This trade represents a 1.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 101,239 shares of company stock valued at $27,174,360. 1.40% of the stock is currently owned by insiders.

Palo Alto Networks Profile (Free Report)

Palo Alto Networks (NASDAQ: PANW) is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company’s product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.

Read More Five stocks we like better than Palo Alto Networks Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding PANW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report).

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Posted by Defense World Staff on Jul 22nd, 2026

Balefire LLC bought a new stake in shares of Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 1,876 shares of the network technology company’s stock, valued at approximately $301,000.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in PANW. Boston Common Asset Management LLC raised its holdings in Palo Alto Networks by 10.8% in the 1st quarter. Boston Common Asset Management LLC now owns 47,194 shares of the network technology company’s stock worth $7,566,000 after purchasing an additional 4,618 shares in the last quarter. Nelson Capital Management LLC boosted its stake in shares of Palo Alto Networks by 14.7% during the 1st quarter. Nelson Capital Management LLC now owns 2,671 shares of the network technology company’s stock valued at $428,000 after purchasing an additional 343 shares in the last quarter. Greenwood Gearhart LLC increased its position in shares of Palo Alto Networks by 53.4% during the first quarter. Greenwood Gearhart LLC now owns 84,030 shares of the network technology company’s stock valued at $13,472,000 after buying an additional 29,245 shares during the period. S&CO Inc. increased its position in shares of Palo Alto Networks by 4.3% during the first quarter. S&CO Inc. now owns 86,925 shares of the network technology company’s stock valued at $13,935,000 after buying an additional 3,579 shares during the period. Finally, True North Advisors LLC raised its stake in Palo Alto Networks by 14.0% in the first quarter. True North Advisors LLC now owns 2,888 shares of the network technology company’s stock worth $463,000 after buying an additional 354 shares in the last quarter. Hedge funds and other institutional investors own 79.82% of the company’s stock.

Analysts Set New Price Targets Several analysts have commented on the stock. Jefferies Financial Group set a $335.00 price objective on shares of Palo Alto Networks and gave the stock a “buy” rating in a report on Wednesday, June 3rd. Stifel Nicolaus set a $340.00 target price on Palo Alto Networks in a research report on Wednesday, June 3rd. Wells Fargo & Company raised their target price on Palo Alto Networks from $325.00 to $420.00 and gave the company an “overweight” rating in a research note on Wednesday, July 1st. Morgan Stanley restated an “overweight” rating and issued a $387.00 target price (up from $320.00) on shares of Palo Alto Networks in a research note on Tuesday. Finally, Citigroup restated a “buy” rating and set a $400.00 price target (up from $340.00) on shares of Palo Alto Networks in a research report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Palo Alto Networks currently has a consensus rating of “Moderate Buy” and an average target price of $331.48.

View Our Latest Stock Analysis on Palo Alto Networks

Palo Alto Networks Trading Down 1.9% NASDAQ:PANW opened at $342.15 on Wednesday. The firm has a market capitalization of $278.85 billion, a P/E ratio of 280.45, a PEG ratio of 12.95 and a beta of 0.91. The company has a debt-to-equity ratio of 0.04, a current ratio of 0.86 and a quick ratio of 0.86. Palo Alto Networks, Inc. has a one year low of $139.57 and a one year high of $368.80. The company’s 50-day simple moving average is $295.28 and its 200 day simple moving average is $214.74.

Palo Alto Networks (NASDAQ:PANW – Get Free Report) last announced its earnings results on Tuesday, June 2nd. The network technology company reported $0.85 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.06. Palo Alto Networks had a net margin of 7.95% and a return on equity of 10.53%. The business had revenue of $3 billion during the quarter, compared to the consensus estimate of $2.94 billion. During the same quarter last year, the firm earned $0.37 earnings per share. The business’s revenue for the quarter was up 31.1% on a year-over-year basis. Palo Alto Networks has set its FY 2026 guidance at 3.770-3.790 EPS and its Q4 2026 guidance at 0.960-0.980 EPS. As a group, analysts forecast that Palo Alto Networks, Inc. will post 2.03 EPS for the current fiscal year.

Insider Activity at Palo Alto Networks In other Palo Alto Networks news, EVP Lee Klarich sold 62,904 shares of Palo Alto Networks stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $258.65, for a total transaction of $16,270,119.60. Following the completion of the transaction, the executive vice president owned 235,983 shares in the company, valued at approximately $61,037,002.95. The trade was a 21.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Josh D. Paul sold 1,100 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $285.08, for a total value of $313,588.00. Following the completion of the sale, the chief accounting officer directly owned 81,636 shares in the company, valued at approximately $23,272,790.88. This represents a 1.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 101,239 shares of company stock worth $27,174,360 over the last quarter. 1.40% of the stock is currently owned by company insiders.

Key Palo Alto Networks News Here are the key news stories impacting Palo Alto Networks this week:

Positive Sentiment: J.P. Morgan-style rotation into cybersecurity is showing up in the news flow, with multiple commentators arguing that AI-driven security demand should benefit PANW as enterprises spend more to protect themselves from increasingly powerful AI tools. Why Palo Alto Stock Can Be a Big Winner in Cybersecurity’s New AI Era Positive Sentiment: Morgan Stanley said sentiment on software stocks has become “too negative,” and named high-profile names like PANW as potential rebound candidates if investors rotate back into quality software leaders. Morgan Stanley Analysts Say Sentiment Has Gotten ‘Too Negative’ on Software Stocks. These Are Their Picks Positive Sentiment: Citi Wealth’s CIO highlighted cybersecurity as a favored theme, saying “infinite AI agents” could drive more enterprise spending on security, which reinforces the bull case for PANW. Citi Wealth CIO Warns “Infinite AI Agents” Will Accelerate Cybersecurity’s Share of Enterprise Spending Positive Sentiment: Palo Alto Networks announced it intends to acquire Embrace to expand its observability platform with digital experience monitoring, adding real-user monitoring and synthetics tools that could broaden its product offering and deepen customer value. Palo Alto Networks to Extend Leading Observability Platform with Innovative Digital Experience Monitoring Neutral Sentiment: One market note said PANW had slipped recently alongside broader software weakness, suggesting investor caution may still be weighing on the shares. Palo Alto Networks (PANW) Sees a More Significant Dip Than Broader Market: Some Facts to Know About Palo Alto Networks (Free Report)

Palo Alto Networks (NASDAQ: PANW) is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company’s product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.

Read More Five stocks we like better than Palo Alto Networks Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding PANW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report).

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Palo Alto Networks Inc. PANW is emerging as one of Wall Street's preferred cybersecurity plays as concerns over increasingly powerful artificial intelligence models drive demand for security products and services.

The view follows comments from International Business Machines (IBM), which said last week that enterprise customers are placing greater emphasis on cybersecurity as more advanced AI models enter the market.

In a research note published Monday, William Blair named Palo Alto Networks its top pick in the cybersecurity sector, arguing that AI is creating more demand for cybersecurity solutions rather than reducing it.

Palo Alto shares fell about 3% to $338.19 on Tuesday after declining 2.8% in the previous session.

Despite the recent pullback, the stock has gained 83% this year and has posted gains in each of the past four months.

William Blair said discussions with private companies, resellers, industry participants and thought leaders pointed to strong cybersecurity spending during the second quarter.

The firm attributed the trend to increasing concerns surrounding Anthropic's Mythos AI model, demand for firewalls ahead of expected price increases and broader worries about AI-driven cyber threats.

Analyst Jonathan Ho wrote, "We are seeing a dramatic shift in prioritization as customers rush to purchase firewalls ahead of expected price increases and as supply chain challenges loom in the background."

The firm also said cybersecurity has become a higher priority following the release of Anthropic's Mythos model and Nvidia's next-generation Blackwell AI architecture.

According to William Blair, spending has been particularly strong for companies offering firewall products and vulnerability management services.

"We believe the strong near-term performance in security stocks following last quarter’s declines suggests that cybersecurity is now perceived as a beneficiary of AI," Ho wrote.

The report noted that vulnerability management has become a leading concern for customers, while spending on AI security and zero-trust projects has temporarily taken a back seat as organizations focus on addressing immediate risks associated with new AI models.

Palo Alto remains William Blair's top cybersecurity pickWilliam Blair maintained an Outperform rating on Palo Alto Networks, citing its competitive position and favorable demand trends.

"We believe Palo Alto continues to take share in the market and benefits from customers deciding to pull the trigger early as the perception is that price increases are coming and backlog/lead times are building," Ho wrote.

The firm said stronger firewall demand should support growth in both annual recurring revenue and product revenue, although rising hardware firewall component costs could weigh on margins.

William Blair also believes AI presents a long-term growth opportunity for established cybersecurity companies.

"AI offers a significant opportunity longer term, as platform vendors appear best positioned from a trust perspective to bring security for AI to customers," Ho wrote.

He added that it was "unlikely" that frontier AI model developers would replace traditional cybersecurity providers.

Palo Alto has also received a series of higher price targets from other Wall Street firms in recent weeks.

Tigress Financial Partners raised its target price to $430, citing the strength of the company's AI-driven platform following its third-quarter results.

Evercore ISI increased its target to $415 after positive channel checks and expectations for future free cash flow generation.

Needham also lifted its price target to $425, pointing to optimism surrounding the company's fiscal 2027 growth outlook following discussions with management.

Palo Alto Networks is seeing strong demand for its services as more powerful AI models have companies fretting about cybersecurity.

Posted by Defense World Staff on Jul 20th, 2026

Boston Common Asset Management LLC increased its position in shares of Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report) by 10.8% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 47,194 shares of the network technology company’s stock after buying an additional 4,618 shares during the period. Boston Common Asset Management LLC’s holdings in Palo Alto Networks were worth $7,566,000 at the end of the most recent reporting period.

A number of other institutional investors have also bought and sold shares of the company. Darwin Wealth Management LLC acquired a new position in shares of Palo Alto Networks in the 2nd quarter valued at about $25,000. Steph & Co. grew its stake in Palo Alto Networks by 88.2% during the fourth quarter. Steph & Co. now owns 143 shares of the network technology company’s stock worth $26,000 after purchasing an additional 67 shares during the period. Knuff & Co LLC acquired a new stake in Palo Alto Networks during the fourth quarter worth approximately $26,000. Sittner & Nelson LLC increased its holdings in Palo Alto Networks by 73.8% in the fourth quarter. Sittner & Nelson LLC now owns 146 shares of the network technology company’s stock worth $27,000 after purchasing an additional 62 shares in the last quarter. Finally, Luken Investment Analytics LLC lifted its stake in Palo Alto Networks by 196.2% in the fourth quarter. Luken Investment Analytics LLC now owns 154 shares of the network technology company’s stock valued at $28,000 after buying an additional 102 shares during the period. Institutional investors own 79.82% of the company’s stock.

Insider Buying and Selling at Palo Alto Networks In other Palo Alto Networks news, EVP Dipak Golechha sold 5,000 shares of the company’s stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $289.56, for a total transaction of $1,447,800.00. Following the transaction, the executive vice president owned 145,250 shares in the company, valued at approximately $42,058,590. This represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CAO Josh D. Paul sold 900 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $345.00, for a total transaction of $310,500.00. Following the completion of the transaction, the chief accounting officer directly owned 79,644 shares in the company, valued at $27,477,180. This trade represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 101,239 shares of company stock worth $27,174,360 in the last ninety days. 1.40% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets PANW has been the topic of a number of research analyst reports. Susquehanna restated a “positive” rating and set a $350.00 price target (up from $200.00) on shares of Palo Alto Networks in a report on Wednesday, June 3rd. DA Davidson lifted their price objective on shares of Palo Alto Networks from $190.00 to $345.00 and gave the company a “buy” rating in a research note on Wednesday, June 3rd. Citigroup reiterated a “buy” rating and set a $400.00 target price (up from $340.00) on shares of Palo Alto Networks in a research report on Monday, July 13th. Sanford C. Bernstein increased their target price on shares of Palo Alto Networks from $209.00 to $253.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 3rd. Finally, Wolfe Research restated an “outperform” rating and issued a $320.00 price target on shares of Palo Alto Networks in a report on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $327.74.

View Our Latest Stock Analysis on Palo Alto Networks

Palo Alto Networks Stock Performance Shares of Palo Alto Networks stock opened at $358.68 on Monday. The stock has a market capitalization of $292.32 billion, a PE ratio of 294.00, a price-to-earnings-growth ratio of 13.32 and a beta of 0.91. Palo Alto Networks, Inc. has a 52 week low of $139.57 and a 52 week high of $368.80. The stock has a 50 day moving average price of $290.04 and a two-hundred day moving average price of $212.48. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.86 and a current ratio of 0.86.

Palo Alto Networks (NASDAQ:PANW – Get Free Report) last issued its earnings results on Tuesday, June 2nd. The network technology company reported $0.85 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.06. Palo Alto Networks had a return on equity of 10.53% and a net margin of 7.95%.The company had revenue of $3 billion for the quarter, compared to analyst estimates of $2.94 billion. During the same period in the prior year, the firm earned $0.37 earnings per share. Palo Alto Networks’s revenue for the quarter was up 31.1% on a year-over-year basis. Palo Alto Networks has set its FY 2026 guidance at 3.770-3.790 EPS and its Q4 2026 guidance at 0.960-0.980 EPS. As a group, equities analysts anticipate that Palo Alto Networks, Inc. will post 2.03 earnings per share for the current fiscal year.

About Palo Alto Networks (Free Report)

Palo Alto Networks (NASDAQ: PANW) is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company’s product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.

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Obchodní aktivita amerických politiků je investory dlouhodobě bedlivě sledovaná. V minulých letech byly pod drobnohledem především investiční kroky bývalé šéfky Sněmovny reprezentantů Nancy Pelosiové (a jejího manžela), od návratu Donalda Trumpa do Bílého domu se pak více pozornosti upřelo právě na něj. Americký prezident v posledním majetkovém přiznání zveřejnil tisíce transakcí uskutečněných prostřednictvím svěřenského fondu. Server Benzinga se podíval na portfolia obou politiků a našel v nich hned desítku shodných titulů.

Společným jmenovatelem většiny shodných pozic jsou technologické firmy a společnosti profitující z rozvoje umělé inteligence. Na seznamu tak figurují jak zástupci Magnificent Seven, tak ale třeba i méně tradiční sázky typu Tempus AI či energetická skupina Vistra.

Mezi nejčerstvějšími přírůstky v portfoliu rodiny Pelosiových jsou Uber a Intel. Paul Pelosi podle zveřejněných dokumentů nakoupil dlouhodobé call opce na obě společnosti s expirací v příštím roce. Trumpův svěřenský fond mezitím letos u obou titulů vykázal kombinaci nákupů i prodejů, přičemž převažovaly nákupní transakce.

Výrazný překryv pak lze zpozorovat u největších technologických společností. Pelosiovi dlouhodobě drží expozici vůči Alphabetu, Nvidii, Applu, Amazonu a Broadcomu, často prostřednictvím opcí, které byly následně převedeny na akcie. Trumpův fond zase během letoška uskutečnil u těchto jmen desítky obchodů, přičemž některé transakce byly v řádu milionů dolarů.

Zvláštní pozornost pak poutá Nvidia, která se stala jedním z hlavních symbolů boomu umělé inteligence. Pelosiovi v posledních letech opakovaně navyšovali svou expozici vůči nejhodnotnější veřejně obchodované společnosti na světě, zatímco Trumpův fond patří mezi nejaktivnější obchodníky s tímto titulem, odhalila analýza serveru Benzinga.

Kromě zavedených technologických gigantů spojuje obě portfolia také orientace na perspektivní segmenty. Zde můžeme zařadit Tempus AI, jež využívá umělou inteligenci ve zdravotnictví, nebo velkého hráče v oblasti kybernetické bezpečnosti Palo Alto Networks. Dalším méně očekávaným jménem je pak energetická společnost Vistra, kterou investoři často vnímají jako nepřímou sázku na rostoucí spotřebu elektřiny datových center.

Deset akcií, které se letos objevily v portfoliích Pelosiové a Trumpa:

Uber Technologies
Intel
Alphabet
Nvidia
Tempus AI
Vistra
Apple
Amazon
Broadcom
Palo Alto Networks

Odlišné investiční přístupy

Benzinga si také všímá toho, že i přes shodu u některých titulů se styl obou táborů výrazně liší. Paul Pelosi je známý využíváním dlouhodobých call opcí, které následně převádí na akcie. Jeho strategie se soustředí především na velké technologické společnosti a strukturální růstové trendy.

To Trumpův svěřenský fond naopak podle zveřejněných údajů realizoval během let 2025 a 2026 desetitisíce transakcí napříč řadou sektorů. Přesto i zde dominují velké americké společnosti a zejména technologické tituly, které tvoří významnou část nejaktivněji obchodovaných pozic.

HomeIndustriesSoftwareTech StocksTech StocksThe company’s shares have roughly doubled over the past three months, as investors have warmed to the idea that AI is increasing the need for cybersecurity productsJuly 16, 2026, 1:42 p.m. ET

For months, cybersecurity bulls have offered that a growing number of artificial intelligence-driven attacks from hackers and bad actors in the Middle East would be good for business. Now, that narrative seems to be catching on in a more widespread way.

Just look at International Business Machines IBM, whose CEO Arvind Krishna told shareholders on Tuesday that customers have been “distracted” due to “rapidly evolving, industrywide cybersecurity concerns.”

Tuesday's stock trading session was marked by a notable shift, as tech investors sold legacy software companies and moved into next-generation hardware makers and cybersecurity titles.

That, plus a new cybersecurity warning from top-level government agencies, greatly benefited cybersecurity segment mainstay Palo Alto Networks (PANW +6.94%). The company's equity rose by nearly 7% that day.

A stark warning That warning was issued by a clutch of federal government security organizations led by the Cybersecurity and Infrastructure Security Agency (CISA), and including the National Security Agency (NSA) and the Federal Bureau of Investigation (FBI). These were joined by international counterparts.

Image source: Getty Images.

The agencies cautioned that "Russian cyber threat actors are targeting vulnerable networking devices in critical infrastructure sectors globally, especially communications, defense industrial base, energy, financial services, government services and facilities, and healthcare and public health."

Among other measures, the agencies recommended that businesses and other organizations implement stronger authentication and data encryption measures and monitor suspicious activity.

Compounding that was the preliminary quarterly earnings update from software giant International Business Machines. The company revealed that its second-quarter revenue and net income not under generally accepted accounting principles (GAAP) would come in notably below the average analyst estimates.

What sent investors running to other segments of the tech sector was remarks from IBM CEO Arvind Krishna. He said IBM was seeing clients prioritize capital spending on hardware items such as servers and memory. It logically follows that if such a shift is occurring, a ramp-up in cybersecurity spend is also necessary to protect those new goods.

Today's Change

(

6.94

%) $

22.93

Current Price

$

353.23

Shock to the system Since Palo Alto Networks is a prominent company in the cybersecurity sphere, it's sure to be a go-to for many clients aiming to beef up the protection of their networks, systems, and equipment.

The danger of sudden, sharply increased spending on segments like cybersecurity is that it often corrects shortly thereafter. Palo Alto Networks is an effective and respected operator in the space, but I'd caution that any potential sales spike could lead to weak year-over-year comparisons in subsequent quarters.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

14.7.2026 22:09

Zámořské akciové trhy během dnešního obchodování posílily, k čemuž přispěla nečekaně nízká čísla o červnové inflaci v USA, která zmírnila obavy z dalšího zvyšování úrokových sazeb ze strany Fedu. Širší index S&P 500 vzrostl o 0,38 % na 7543,86 bodu a technologický Nasdaq Composite si připsal 0,9 % na 26107,01 bodu, zatímco index Dow Jones zakončil se ziskem 0,02 % na hodnotě 52508,27 bodu. Pozitivní náladu na trhu podpořily také solidní hospodářské výsledky velkých bank na začátku nové výsledkové sezóny.

Z jednotlivých odvětví indexu S&P 500 zaznamenaly nejvýraznější růst informační technologie o 1,3 %, následované komunikačními službami, které přidaly 1,1 %, a finančním sektorem se ziskem 0,4 %. Naopak nejvíce oslabila zdravotní péče, která odepsala 1,9 %. V červených číslech skončila také nezbytná spotřeba se ztrátou 1,4 % a reality, které klesly o 0,4 %.

Mezi nejúspěšnější tituly dne se zařadila kyberbezpečnostní společnost Crowdstrike Holdings (CRWD) s nárůstem o 12 %. Výrazně posílila také investiční banka Goldman Sachs Group (GS) o 9,0 %, prodejce aut Carvana (CVNA) o 8,3 %, Palo Alto Networks (PANW) o 6,8 % a Monolithic Power Systems (MPWR) se ziskem 7,1 %. Na druhé straně po slabších kvartálních tržbách prudce propadla společnost IBM (IBM), která odepsala 25 %. Nedařilo se ani společnosti Biogen (BIIB) se ztrátou 8,2 %, HCA Healthcare (HCA) s poklesem o 7,0 %, Intuitive Surgical (ISRG) o 6,8 % a GE HealthCare Technologies (GEHC), která oslabila o 6,1 %.

Na komoditním trhu rostla severoamerická lehká ropa WTI o 1,9 % na 79,65 dolaru za barel a spotové zlato posílilo o 1,3 % na 4054,53 dolaru za unci. Americký dolar pod vlivem inflačních dat oslabil. Euro vůči němu vzrostlo o 0,4 % na 1,1424 dolaru a britská libra si připsala 0,3 % na 1,3383 dolaru, zatímco japonský jen posílil o 0,1 % na 162,19 jenu za dolar. Výnosy desetiletých američních vládních dluhopisů v reakci na nižší inflaci klesly o čtyři bazické body na 4,58 %. Bitcoin zaznamenal nárůst o 3,9 % na 64554,91 dolaru.

Index Dow Jones +0,02 % na 52508,27 b.
S&P 500 +0,38 % na 7543,86 b.
Nasdaq Composite +0,9 % na 26107,01 b.

Index S&P 500 +0,38 % na 7543,86 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,3 % Zdravotní péče -1,9 % Komunikační služby +1,1 % Nezbytná spotřeba -1,4 % Energie +0,4 % Reality -0,4 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Crowdstrike Holdings (CRWD) +12 % IBM (IBM) -25 % Goldman Sachs Group (GS) +9,0 % Biogen (BIIB) -8,2 % Carvana (CVNA) +8,3 % HCA Healthcare (HCA) -7,0 % Dell Technologies (DELL) +7,1 % Intuitive Surgical (ISRG) -6,8 % Palo Alto Networks (PANW) +6,8 % Stryker Corp (SYK) -6,1 %
Daniel Marván
Fio banka, a.s.
Prohlášení

In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $330.30, marking a +1.35% move from the previous day. This change outpaced the S&P 500's 0.79% loss on the day. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 1.55%.

The security software maker's shares have seen an increase of 16.56% over the last month, surpassing the Computer and Technology sector's gain of 3.44% and the S&P 500's gain of 4.28%.

The upcoming earnings release of Palo Alto Networks will be of great interest to investors. The company is predicted to post an EPS of $0.97, indicating a 2.11% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.35 billion, reflecting a 32.1% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.77 per share and a revenue of $11.41 billion, representing changes of +12.87% and +23.71%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Palo Alto Networks is currently a Zacks Rank #3 (Hold).

In terms of valuation, Palo Alto Networks is presently being traded at a Forward P/E ratio of 86.45. This valuation marks a premium compared to its industry average Forward P/E of 49.95.

It is also worth noting that PANW currently has a PEG ratio of 6.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Security industry stood at 3.14 at the close of the market yesterday.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Key Takeaways BlackBerry's fiscal Q1 revenue rose 26% to $153M, with positive operating cash flow after nine years.BB reaffirmed Secure Comms revenue guidance and highlighted QNX momentum in automotive software.PANW grew revenue 31%, but integration costs and intense competition may pressure near-term profits. Cybersecurity has become one of the fastest-growing segments in enterprise technology as organizations face increasingly sophisticated cyber threats. From ransomware attacks to AI-powered phishing campaigns, businesses are investing heavily in security solutions to protect their digital assets. Against this backdrop, investors continue to look for cybersecurity companies capable of delivering sustainable long-term growth.

Two companies that often attract investor attention are BlackBerry Limited (BB - Free Report) and Palo Alto Networks (PANW - Free Report) . Per a report from Fortune Business Insights, the global cybersecurity market is estimated to go from $248.3 billion in 2026 to $699.4 billion by 2034 at a CAGR of 13.8%. While both operate in cybersecurity, they are at very different stages of their transformation and growth journeys. BlackBerry is reinventing itself after exiting the smartphone business, while Palo Alto Networks has established itself as a dominant force in enterprise cybersecurity.

Both help enterprises defend against cyber threats, though with different product focuses. So, which stock offers the better investment opportunity today?

The Case for BB StockBlackBerry operates primarily through two businesses –Secure Communications and Cybersecurity and QNX embedded software for automotive and industrial applications. Its cybersecurity offerings include endpoint security, identity protection, secure communications and AI-driven threat detection. Its QNX operating system powers millions of vehicles worldwide and is increasingly benefiting from trends such as connected cars and ADAS. BB delivered a strong start to fiscal 2027, with first-quarter revenue rising 26% year over year to $153 million, surpassing guidance. Its adjusted EBITDA more than doubled to about $36 million and generated a positive operating cash flow of about $5 million, marking its first positive first-quarter operating cash flow in nine years.

Image Source: Zacks Investment Research

One area where BlackBerry clearly differentiates itself is automotive software. As autonomous driving, software-defined vehicles and electric vehicles continue growing, QNX could become an increasingly valuable asset. QNX is driven by record development license revenue, new automotive and GEM design wins, and continued momentum in long-term opportunities such as GEM expansion, Physical AI and the Alloy Kore platform.

Secure Communications delivered its strongest quarter in years, with revenue increasing 24% year over year, driven by robust government demand and significant contract wins. Customer retention, recurring revenue and government demand for secure communications solutions continue to show encouraging momentum. A multiyear expansion with Shared Services Canada, driven by rising demand for digital sovereignty and cybersecurity, significantly boosted fiscal first-quarter revenue through the expanded deployment of Secusmart's encrypted communications solutions. Management cautioned that large government contracts have long sales cycles, making this quarter’s outsized growth unlikely to recur every quarter. Still, this unit is evolving into a stable growth business with upside from major government wins. 

Recently, BB upgraded AtHoc with Microsoft Teams and Entra ID integrations for faster emergency response. AtHoc supports recurring software revenue alongside Secure Comm and QNX growth. In June, the Secure Comms arm also upgraded its Unified Endpoint Management platform, aimed at addressing the evolving needs of enterprises, governments and highly regulated industries. The company reaffirmed its full-year revenue guidance for Secure Comms of $270–$280 million, representing 4–8% growth.

Despite possessing valuable technology, BlackBerry continues to face challenges. Revenue growth has remained inconsistent over the past few years, reflecting intense competition in enterprise cybersecurity. Larger rivals with broader product portfolios have captured a significant share of new enterprise spending. Although management has streamlined operations and reduced costs, investors are still waiting for sustained revenue acceleration and stronger profitability. Investors should also recognize that automotive software follows longer development cycles than enterprise cybersecurity, meaning revenue growth tends to be slower and less predictable.

The Case for PANW StockPalo Alto continues to benefit from higher cybersecurity priority as enterprises deploy AI and look to consolidate vendors onto fewer platforms. PANW reported fiscal third-quarter revenues of $3 billion, expanding 31% year over year. The company continues to strengthen its AI-driven cybersecurity platform, leveraging advanced AI models and strategic partnerships to enhance threat detection and defense. Strong customer demand drove continued platform adoption, with 110 new platformizations during the quarter, supporting its long-term goal of surpassing 4,000 platformized customers and reaching $20 billion in next-generation security ARR by fiscal 2030.

Image Source: Zacks Investment Research

Post-acquisition integration remains on track, with product innovation, cost efficiencies and cross-selling driving faster-than-expected profitability. CyberArk and Chronosphere continue to strengthen growth in next-generation security, while operational efficiencies and synergy realization support the company's long-term margin and free cash flow targets. These additions expand Palo Alto’s addressable markets into identity security and observability, which management views as crucial in an agentic AI era. PANW reported RPO of $18.4 billion, 36% year over year. Around $1.8 billion came from acquired businesses. A growing RPO indicates customers are committing to larger, longer-term cybersecurity contracts. This provides excellent revenue visibility and demonstrates confidence in the company's integrated platform strategy.

The company continues to advance its platform capabilities, endpoint security and AI-native solutions. In June, PANW expanded Project Lightwell with IBM and Red Hat, integrating virtual patching and software remediation to help organizations identify vulnerabilities and reduce exposure to emerging cyber threats. Also, it partnered with Deutsche Telekom to launch Sovereign Cortex with T Security, delivering AI-driven security operations with enhanced data sovereignty controls for regulated European industries. In May, PANW completed the acquisition of Portkey, expanding its Prisma AIRS platform with capabilities to monitor, orchestrate and govern AI agents at scale. It launched Idira, an identity security platform designed to manage and secure human, machine and AI agent identities across enterprises.

However, near-term prospects for Palo Alto might be hurt by changing customer behavior. In the past few quarters, various competitors in the cybersecurity space have noticed that the companies have been breaking their cybersecurity investment plans into phases and implementing the same over longer periods of time, instead of making a single large investment. Rising integration costs from the CyberArk and Chronosphere acquisitions are expected to weigh on PANW's near-term profitability as the company integrates employees, operations and go-to-market teams.

Increasing competition from Microsoft, CrowdStrike and other cybersecurity firms is a major woe. To survive in the highly competitive cybersecurity market, each player must continually invest in broadening its capabilities. Over the past few years, Palo Alto has invested heavily to enhance its sales and marketing capabilities, particularly by increasing the sales force. This has raised its operating expenses.  Slower operating leverage would weigh on it even if revenues remain on plan. Furthermore, though PANW foresees these investments to garner benefits over the long run, uncertainty about the payback period still looms.

Price Performance Trajectory for BB & PANWYear to date, BB and PANW have registered gains of 189.4% and 76.9%, respectively.

Image Source: Zacks Investment Research

Valuation ComparisonsBlackBerry typically trades at a much lower valuation because investors remain uncertain about its turnaround. A lower valuation can offer potential upside if management successfully accelerates growth. Palo Alto Networks commands a premium valuation.

In terms of the forward 12-month price/earnings multiple, BB is trading at 72.67X, lower than PANW's 146.44X.

Image Source: Zacks Investment Research

How Does the Zacks Consensus Estimate Compare for BB & PANW?The Zacks Consensus Estimate for BB earnings for fiscal 2027 has been revised down over the past 60 days.

Image Source: Zacks Investment Research

Meanwhile, for PANW, there is a marginal upward estimate revision.

Image Source: Zacks Investment Research

BB or PANW: Which Stock is the Better Buy?If BlackBerry successfully expands cybersecurity adoption while monetizing QNX more effectively, its shares could deliver healthy long-term gains. However, the path remains uncertain. Platform consolidation, AI security demand, expanding recurring revenues and cash flow, and disciplined integration support steady long-term growth for Palo Alto. However, intensifying competition, an uncertain economic environment and acquisition integration risks remain key concerns.

BB, at present, carries a Zacks Rank #2 (Buy) while PANW has a Zacks Rank #3 (Hold). Consequently, in terms of Zacks Rank and valuations, BB provides a more compelling risk-reward profile for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PANW added 110 new platformized customers in Q3 2026, bringing the total to about 2,280 customers.PANW is expanding its platform with CyberArk and Chronosphere to strengthen security capabilities.PANW targets more than 4,000 platformized customers and $20 billion in Next-Generation Security ARR by 2030. Palo Alto Networks (PANW - Free Report) is focusing on its platformization strategy, which involves getting its customers to adopt multiple PANW products spanning across network, cloud and endpoint security, under a unified platform approach. In the third quarter of fiscal 2026, the company added 110 new platformized customers, including 20 from the CyberArk and Chronosphere acquisitions. Total platformized customers reached approximately 2,280 at the end of the third quarter.

Platformized customers continue to show strong spending and retention trends. PANW's platformized customers currently have a 120% net retention rate and single-digit churn. This means existing customers continue to buy more PANW products over time, while very few leave the platform. During the third quarter, the company shared examples of customers expanding their deployments. A large U.S. power producer adopted next-generation firewalls and SASE in an $80 million deal, while a global consulting company signed a contract worth more than $20 million to use Prisma AIRS for securing its AI applications and agents.

PANW is also expanding its platform through acquisitions. The CyberArk acquisition adds identity security, while Chronosphere strengthens its observability capabilities. The company has already launched around 1,000 cross-selling engagements related to CyberArk. Management believes these additions will help customers manage network security, cloud security, identity security, AI security and security operations from a single platform instead of using multiple vendors.

Platformization is central to PANW's long-term financial goals. The company aims to reach more than 4,000 platformized customers and $20 billion in Next-Generation Security annual recurring revenues by fiscal 2030. If adoption continues to rise, PANW's platformization strategy could remain one of the most important contributors to the company’s long-term growth. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates a year-over-year increase of around 23.7% and 20.2%, respectively.

How Competitors Fare Against PANWCompetitors like CrowdStrike (CRWD - Free Report) and SentinelOne (S - Free Report) are also gaining ground through platform expansion and AI innovation.

CrowdStrike ended its first quarter of fiscal 2027 with $5.51 billion in ARR, reflecting 24% year-over-year growth. The robust increase was fueled by the growing adoption of CrowdStrike’s Falcon Flex subscription model.

Though comparatively a small competitor, SentinelOne posted first-quarter fiscal 2027 year-over-year growth of 23% in its ARR. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.

PANW’s Price Performance, Valuation & EstimatesShares of Palo Alto Networks have jumped 83.4% in the year-to-date period compared with the Zacks Security industry’s return of 61.2%.

PANW’s YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Palo Alto Networks trades at a forward price-to-sales ratio of 20.31X compared with the industry’s average of 18.07X. The Zacks Value Score of F also suggests that PANW stock is overvalued.

PANW Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Palo Alto Networks’ fiscal 2026 and 2027 earnings implies year-over-year growth of 12.9% and 8.1%, respectively. The estimates for fiscal 2026 and 2027 have been revised up by 6 cents and 8 cents, respectively, over the past 60 days.

Image Source: Zacks Investment Research

Palo Alto Networks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nikesh Arora, chairman and CEO at Palo Alto Networks, joins 'Squawk on the Street' to discuss concerns around high token costs, OpenAI's newest model and more.

The Dow Jones Industrial Average (DJI) is down 810 points midday, heading for its worst single-session decline in nearly a month. The S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) are also in the red, weighed down by surging oil prices—back above $75 per barrel—amid heightened tensions with Iran. President Donald Trump told the NATO summit in Turkey that the U.S. will hit them hard tonight. In response, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), is back above 18 for the first time in two weeks.

Continue reading for more on today's market, including:

Cruise stocks pinched by rising oil prices. Tech sector rotation buoys Alibaba stock. Plus, oil bulls charge; Broadcom bucks the trend; and cybersecurity stocks struggle. 

Occidental Petroleum Corp (NYSE:OXY) is getting lit up in the options pits today, as energy companies rise with oil prices. At last look, 112,000 calls have changed hands, volume that's 11 times the average intraday amount and 12 times the number of puts exchanged. The weekly 7/10 55-strike call is the most popular, while new positions are also being bought to open at the July 56 call. OXY is 5.9% higher to trade at $54.72, and is now 31.5% higher for 2026.

Broadcom Inc (NASDAQ:AVGO) is bucking the broad market selloff today, up 5.1% to trade at $390.03, after the company inked a $30 billion supplier deal with Apple (AAPL) to produce over 15 billion chips. Broadcom stock is 12% higher on the year with support stepping up at its 200-day moving average.

Palo Alto Networks Inc (NASDAQ:PANW) stock is near the bottom of the Nasdaq, last seen down 6.1% to trade at $316.54. Cybersecurity stocks across the board have reacted negatively to resumed geopolitical tensions. PANW hit a record high of $368.17 on July 6, and is still 73.7% year-to-date.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Palo Alto Networks (PANW - Free Report) .

Palo Alto currently has an average brokerage recommendation (ABR) of 1.51, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 55 brokerage firms. An ABR of 1.51 approximates between Strong Buy and Buy.

Of the 55 recommendations that derive the current ABR, 40 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 72.7% and 5.5% of all recommendations.

Brokerage Recommendation Trends for PANW

Check price target & stock forecast for Palo Alto here>>>

While the ABR calls for buying Palo Alto, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is PANW a Good Investment?In terms of earnings estimate revisions for Palo Alto, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $3.77.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Palo Alto. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Palo Alto.

Palo Alto Networks is rated 'Buy' due to durable growth drivers: platformization, the CyberArk acquisition, and robust FCF compounding. PANW targets $20B NGS ARR by FY2030E (~25% CAGR) and 40% adjusted FCF margin by FY2028E, supported by strong customer retention and multi-product adoption. The $25B CyberArk acquisition introduces near-term dilution and integration costs, but significantly enhances PANW's identity security and AI-driven capabilities.

Steven E. Orr explains why investors should focus on out-of-favor companies with strong fundamentals, highlighting Microsoft (MSFT) as a potential rebound candidate. He also shares his views on the AI race, sets an ambitious target for GE Aerospace (GE), and identifies Palo Alto Networks (PANW) as a top cybersecurity play amid growing digital security demand.

Shares of Palo Alto Networks Inc. PANW climbed more than 5% on Monday after analysts at BTIG and Wells Fargo raised their price targets on the cybersecurity company.

The analysts raised prices citing improving business momentum and continued demand for AI-driven security solutions.

The stock rose as much as 5.7% during morning trading to a record high of $368.17 before easing slightly.

Shares were last up about 2.7% at $357.50.

The gains come as investors continue to focus on artificial intelligence-related cybersecurity spending and the company's recently announced $25 billion acquisition of CyberArk, which is expected to strengthen its position in identity security for human, machine and agentic AI environments.

BTIG raised its price target on Palo Alto Networks to $380 from $333 while maintaining a Buy rating.

The brokerage described Palo Alto Networks as its “top pick,” citing improving momentum and larger deal sizes.

Wells Fargo also increased its price target to $420 from $325, maintaining its Overweight rating and adding the stock to its tactical ideas list due to a “clear catalyst path.”

The positive analyst commentary helped push the stock to a fresh all-time high.

BTIG also named Palo Alto Networks among its preferred "second-half outperformer" stocks alongside On Holding and Capital One, reinforcing expectations that the cybersecurity company could continue to outperform despite its strong gains over the past year.

AI security demand remains a key growth driverInvestor optimism has been supported by expectations that the adoption of AI agents will increase cybersecurity risks and drive higher enterprise spending on security platforms.

The company's acquisition of CyberArk has also strengthened that outlook by expanding Palo Alto Networks' exposure to security solutions covering human, machine and agentic AI identities.

At the same time, analysts noted two risks facing the stock: its elevated valuation and the possibility that a portion of its growth is being driven by acquisitions rather than organic expansion.

The stock has gained about 79% over the past 12 months and is now trading above its previous 52-week high of $358.10, a level that technical analysts often view as potential new support if the breakout is sustained.

Palo Alto Technicals Palo Alto Networks is also trading significantly above key moving averages, sitting roughly 40.2% above its 50-day simple moving average of $254.97 and about 76.8% above its 200-day simple moving average of $202.25.

Momentum indicators suggest the rally has become extended. The stock's Relative Strength Index (RSI) stands at 80.28, indicating overbought conditions that could leave shares vulnerable to consolidation or a pullback even if the broader uptrend remains intact.

The longer-term trend, however, continues to appear positive. The 50-day moving average remains above the 100-day moving average, while a golden cross—formed in May when the 50-day moving average moved above the 200-day moving average—continues to support the bullish technical outlook.

Broader market sentiment also provided support, with the Nasdaq-100 rising 1.37% on Monday.

However, analysts cautioned that as momentum continues to build, the risk of the stock becoming a "crowded trade" also increases.

Palo Alto Networks (PANW - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this security software maker have returned +25.5% over the past month versus the Zacks S&P 500 composite's -1.4% change. The Zacks Security industry, to which Palo Alto belongs, has gained 7.6% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Palo Alto is expected to post earnings of $0.97 per share, indicating a change of +2.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -7.9% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $3.77 points to a change of +12.9% from the prior year. Over the last 30 days, this estimate has changed -5.1%.

For the next fiscal year, the consensus earnings estimate of $4.08 indicates a change of +8.1% from what Palo Alto is expected to report a year ago. Over the past month, the estimate has changed +2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Palo Alto.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Palo Alto, the consensus sales estimate for the current quarter of $3.35 billion indicates a year-over-year change of +32.1%. For the current and next fiscal years, $11.41 billion and $13.72 billion estimates indicate +23.7% and +20.2% changes, respectively.

Last Reported Results and Surprise HistoryPalo Alto reported revenues of $3 billion in the last reported quarter, representing a year-over-year change of +31.1%. EPS of $0.85 for the same period compares with $0.8 a year ago.

Compared to the Zacks Consensus Estimate of $2.94 billion, the reported revenues represent a surprise of +2%. The EPS surprise was +4.94%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Palo Alto is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Palo Alto. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) stock is up 9% to $127.31 in midday trading on Wednesday, leading a broad AI-software rally after the company unveiled a sovereign-AI partnership with NVIDIA (NASDAQ:NVDA). Palo Alto Networks (NASDAQ:PANW) stock is riding the risk-on tape higher, up 4% to $355.40.

The move for Palantir stock caps a sharp reversal for a name that had been under pressure. Palantir shares remain down 28.5% year to date even after today’s pop, and the stock trades at a P/E ratio of 130x. Palantir’s market cap now sits at roughly $304.6 billion.

NVIDIA Sovereign-AI Deal Ignites Palantir Stock Palantir announced a partnership with NVIDIA this week to deliver secure “sovereign AI” for U.S. government agencies, critical infrastructure operators, and allies. Palantir is integrating NVIDIA’s Nemotron open AI models into its intelligent engine, enabling agencies to deploy frontier-level AI in secure, air-gapped environments while keeping sensitive data off public networks.

Customers can customize the models with their own data and retain ownership of the resulting model weights. Palantir’s Sovereign AI Operating System is built on its AIP, Foundry, Ontology, and Apollo products, aligning directly with its existing federal footprint.

CEO Alex Karp touted the deal on CNBC on Wednesday, arguing that frontier labs such as OpenAI and Anthropic lack sufficient customer IP protection, and that Palantir’s customers want control over their compute, models, and data. NVIDIA stock, notably, is slightly lower on the day, showing the reaction is Palantir-specific rather than a chip-cycle catalyst.

Bull and Bear Cases on the Valuation The valuation debate around Palantir stock has intensified into today’s rally. On June 16, Wolfe Research initiated Palantir stock at Peer Perform, calling its enterprise AI product portfolio best-in-class but citing premium valuation as a roadblock. Analyst Alex Zukin flagged net revenue retention of 150%, 85% year-over-year revenue growth.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn't make the cut. Grab the names FREE today.

Zukin also modeled a base-case revenue CAGR of 39% from 2026 to 2029 against a total addressable market over $385 billion. Palantir’s most recent Q1 2026 report showed revenue of $1.63 billion, up 85% year over year, and management raised full-year guidance. The bear case is straightforward: Palantir remains a high-multiple, richly valued name where any growth stumble can trigger a sharp derating.

Cybersecurity Peers Ride the Tape Palo Alto Networks stock and CrowdStrike stock are participating in the broader AI-software bid rather than sharing Palantir’s specific catalyst. CrowdStrike (NASDAQ:CRWD) shares are up 2% to $776.09, a smaller move as traders position ahead of the company’s 4-for-1 stock split, with split-adjusted trading beginning July 2.

Palo Alto Networks stock has been on a tear, up 93% year to date heading into today. Analyst sentiment is stacked bullish, with 44 Buy, 9 Hold, and 1 Sell ratings, though PANW stock now trades well above the analyst target price of $314.48 at a P/E ratio of 294x. The cybersecurity lane is related to Palantir’s government software niche, but distinct.

What to Watch A key question now is whether this week’s NVIDIA partnership translates into signed federal contracts for Palantir rather than headlines alone. The sovereign-AI push aligns with Palantir’s existing government footprint, yet the company’s premium multiple leaves little room for disappointment if deal flow proves slow to materialize. Any renewed cooling in the broad AI-software rally could also pressure high-multiple stocks such as Palantir, Palo Alto Networks, and CrowdStrike in tandem.

Investors can watch for whether Palantir stock holds its gains into the close, along with any follow-up commentary from federal customers on the NVIDIA integration. These are volatile, high-multiple names, and a single session doesn’t reset the long-term thesis for any of them.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Supporting his view, Cantor Fitzgerald analyst C.J. Muse maintained Micron with an Overweight rating on June 29 and raised the price target from $1,500 to $2,000.

Jason Snipe, founder and chief investment officer of Odyssey Capital Advisors, picked Palo Alto Networks, Inc. (NASDAQ:PANW).

Lending support to his choice, BTIG analyst Gray Powell maintained Palo Alto at Buy on June 30 and raised the price target from $333 to $380.

Don’t forget to check out our premarket coverage here

Joshua Brown, co-founder and CEO of Ritholtz Wealth Management, said Apple Inc. (NASDAQ:AAPL) is expected to have a good second half.

Last week, Apple raised prices on several of its hardware products, citing an extraordinary surge in demand for memory and storage driven by the rapid expansion of AI data centers.

Joseph M. Terranova, senior managing director for Virtus Investment Partners, recommended Amgen Inc. (NASDAQ:AMGN).

On June 16, Mizuho analyst Salim Syed maintained Amgen at Neutral and raised the price target from $295 to $303.

Price Action Micron gained 0.8% to close at $1,154.29 on Tuesday. Palo Alto shares rose 2.7% to settle at $341.02 during the session. Apple shares gained 2.7% to close at $289.36 on Tuesday. Amgen shares rose 0.4% to settle at $362.12 during the session. Photo via Shutterstock

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Palo Alto Network stock has gone parabolic this year, helped by the belief that the ongoing AI boom will lead to more demand for cybersecurity tools. PANW jumped to a record high of $332, up by 137% from its lowest level this year. Its market capitalization has jumped to over $270 billion.

Palo Alto Networks and other cybersecurity stocks have been in a strong bull run this year. Fortinet stock jumped to a high of $157, up by over 97% this year, while CrowdStrike has jumped by 62%. Other similar companies like Okta and SentinelOne have soared.

The surge is happening as investors remain optimistic about its prospects. Arete Research hiked its target from $185 to $433, while William Blair reiterated the rating to outperform. 

Some of the other top investment banks, like Goldman Sachs, Susquehanna, and Piper Sandler, have all maintained a bullish outlook. The average target among analysts is $311, down slightly from the current level.

The general view among analysts is that the company’s tools will see more demand in the AI era. This urgency jumped after Anthropic released Mythos, its most advanced model.

The most recent earnings report showed that Palo Alto’s revenue jumped by 31% in the third quarter to $3 billion. This revenue growth included $388 million from CyberArk, the company it acquired in a $25 billion deal. 

A look beneath the surface shows that the next-generation security ARR jumped by 60% YoY to $8.1 billion, while the Remaining performance obligation (RPO) soared by 36% to $18.4 billion. 

Palo Alto Networks now expects that its next-generation ARR will jump to between $8.9 billion and $8.95 billion this year, an increase of 60%. Its revenue is expected to grow by 25% this year. While this double-digit growth rate is impressive, the main challenge is that it is boosted by CyberArk, a sign that the organic revenue growth is not all that strong.

Valuation concerns remainThere is no doubt that demand for cybersecurity solutions is rising and that Palo Alto Networks will continue being the most dominant player. However, there are now concerns about its valuation. 

Data shows that the forward price-to-earnings ratio of 80, much higher than the sector median of 23. It is also higher than the five-year average of 23. 

Notably, the company’s rule-of-40 shows that it is a bit overvalued. It has a net profit margin of 8% and a forward revenue growth of 24%, giving it a multiple of 33%. This is notable because its revenue growth estimate includes CyberArk, its recent buyout.

READ MORE: PANW stock dubbed 'double table pounder' despite muted outlook

The daily chart shows that the PANW stock has been in a strong bull run in the past few months. It recently crossed the important resistance level of $302, the highest swing on June 1. Moving above that level invalidated the double-top pattern. 

The risk, however, is that it has become highly overbought as the Relative Strength Index (RSI) has moved to 77.62. Also, the Stochastic Oscillator and other oscillators have continued rising. The stock remains above all moving average, with the 100-day EMA being at $223. 

Therefore, there is a risk that the overbought stock will suffer a mean reversion. If this happens, it will drop to the key support level of $300.