Palo Alto will start 2030 at $455, then soar to $464 within the first half of the year, and finish 2030 at $474. In this period, the Palo Alto price would rise from $467 to $584, which is +25%. Palo Alto will start 2030 at $467, then soar to $477 within the first half of the year, and finish 2030 at $487.
- Recent stocks from this report have soared up to +178.7% in 3 months – this month’s picks could be even better.
- Palo Alto Networks stock has compounded at an extremely impressive 33% annually over the last ten years and has been one of the strongest stocks in the market this year, up 85% YTD.
- Palo Alto will start 2030 at $456, then soar to $465 within the first half of the year, and finish 2030 at $475.
- In this period, the Palo Alto price would rise from $473 to $594, which is +26%.
- Palo Alto will rise to $450 within the year of 2028, $500 in 2030 and $600 in 2034.
For instance, the number of Palo Alto customers using five or more of its cybersecurity modules increased to 400 in 2023 as compared to just 80 in 2021. By 2028, the company expects the number of customers using five or more modules to increase to more than 7,000. That may be achievable given that Palo Alto is now relying on artificial intelligence (AI) to improve its offerings. As such, it won’t be surprising to see Palo Alto exceed its fiscal 2024 revenue forecast of $8.15 billion to $8.20 billion, which would translate into revenue growth of 19% to 20% over last year.
Shares of the cybersecurity specialist shot up more than 15% thanks to faster-than-expected growth in earnings and solid guidance that points toward healthy growth ahead. Even in this scenario with an ambitious growth rate, it becomes evident that Palo Alto’s stock is still undervalued when considering the current stock price. This underscores the importance of a comprehensive assessment of all factors affecting the company’s valuation. The company specializes in zero trust security solutions, covering network security, cloud security, security operations, and threat intelligence and security consulting through their Unit 42 team. Their network security platform includes hardware and software firewalls, secure access services, and various cloud-delivered security services. They also provide cloud-native security solutions through Prisma Cloud.
Forecast return on equity
This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Palo Alto Networks (PANW Quick QuotePANW – Free Report) is a global cybersecurity company specializing in advanced firewalls and cloud-based offerings to protect enterprises from cyber threats. In addition to strong price momentum propelling the stock, PANW also enjoys a Zacks Rank #1 (Strong Buy) rating, reflecting earnings estimates that have been trending higher all year. The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor.
Also, when forecasting, technical analysis tools are used, world geopolitical and news factors are taken into account. According to 37 stock analysts, the average 12-month stock price forecast for PANW stock stock is $266.11, which predicts an increase of 1.76%. The company estimates that the addressable market for AI-driven cybersecurity operations could increase to $90 billion in 2028. Palo Alto doesn’t want to miss out on this lucrative opportunity, which is why it plans to integrate AI across its entire portfolio of services to provide real-time threat detection and response to customers. It also plans to use generative AI to make it easier for customers to interact with its platforms.
- It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
- Palo Alto Networks is a leading cybersecurity company with a strong financial profile and a proven track record of delivering innovative and effective security solutions.
- Even better, Palo Alto believes that it can sustain these robust growth levels over the next three years.
- The firm cites the cyber company’s ability to be a «long-term consolidator of security.»
Ultimately, while Palo Alto Networks possesses the fundamentals of a strong business, its future prospects hinge on addressing critical issues surrounding net income and mitigating these risks. In this context, it becomes evident that sustaining a revenue growth rate of 10.48% alone is insufficient for Palo Alto. Such a growth trajectory would result in an overvalued stock, underscoring the need for a comprehensive evaluation of various factors to attain a more accurate valuation. 42 Wall Street analysts have issued «buy,» «hold,» and «sell» ratings for Palo Alto Networks in the last year. There are currently 4 hold ratings and 38 buy ratings for the stock.
Additionally, Palo Alto Networks offers security automation, analytics, endpoint security, and attack surface management solutions through their Cortex portfolio. Unit 42 combines threat researchers, incident responders, and security consultants to provide intelligence-driven cybersecurity services to proactively manage cyber risks for their clients. You must make your own assessment of the PANW stock, taking in such things as the environment in which it trades and your risk tolerance. When looking for Palo Alto Networks stock forecasts, it’s important to bear in mind that analysts’ projections and price targets can be wrong. Analysts’ PANW stock predictions are based on making fundamental and technical studies of the stock’s performance.
Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. These meticulous calculations and assumptions provide the groundwork for a comprehensive forex trading books for beginners evaluation of Palo Alto’s valuation under various growth scenarios. Furthermore, depreciation and amortization, as well as interest expenses, are projected within each model. These projections are calculated as a percentage of revenue, with a D&A margin of 1.42% and an interest expense margin of 0.39%.
For comparison, the number of $10 million-plus deals increased 59% in fiscal 2022. The company projects its revenue and billings to increase at a compound annual growth rate (CAGR) of 17% to 19% through fiscal 2026. Meanwhile, Palo Alto sees its RPO increasing at a CAGR of 25% over the same period, suggesting that it could continue to grow its revenue at a nice clip beyond the next three years as well.
Palo Alto Networks Earnings History by Quarter
That is because some firms prohibit Zacks from displaying detailed information on their recommendations such as in the upgrade/downgrade table. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style. According to the latest long-term forecast, Palo Alto price will hit $300 by the end of 2025 and then $400 by the end of 2026. Palo Alto will rise to $450 within the year of 2028, $500 in 2030 and $600 in 2034.
In conclusion, it’s important to acknowledge that Palo Alto is a robust business, characterized by double-digit revenue growth and healthy free cash flows within the current context. However, it’s crucial to recognize that unless the issue of net income is addressed, the stock may have already reached its future value for 2028. Beyond this point, predictions become speculative, particularly regarding employee decisions to cash in their stocks.
Additionally, there exists a CapEx margin of 2.12%, all of which are derived from historical data. A different narrative emerges when we assess the balance sheet, which stands notably robust. A cursory glance reveals that Palo Alto possesses sufficient cash reserves to cover its entire debt load.
Furthermore, one of the reasons for the «Hold» rating, rather than a «Sell,» is the observation in the «financials» section, where the company possesses a substantial free cash flow of $2.7 billion. The projected free cash flows are all below $300 million in 2023. This is due to the exclusion of $1.07 billion in stock-based compensation, which, while not constituting an outflow of cash, how to invest in real estate could dilute the fair value if those stocks are subsequently sold by employees. Palo Alto’s revenue has displayed consistent growth since 2017, boasting an impressive annual rate of 36%. However, it’s important to note that this figure represents historical growth. If we examine the period post-2021, we observe a notable slowdown, with the revenue growth rate dipping to just 15%.
However, as we delve into the valuation section and explore the most optimistic scenario, it becomes evident that even these impressive results may not significantly impact the stock’s trajectory. Analysts anticipate a net income of $357.6 million for 2023 and $385.37 million for 2024. Palo Alto Networks has not confirmed its next earnings publication date, but the company’s estimated earnings date is Thursday, November 16th, 2023 based off last year’s report dates.
It’s important to reach your own conclusion on a company’s prospects and the likelihood of achieving analysts’ targets. Palo Alto’s key cybersecurity solutions and innovations across three major platforms – Network Security, Cloud Security and SOC Security – suggest the company is well-positioned. Club name Wells Fargo (WFC) on Friday delivers a third-quarter beat, as earnings season gets underway. The bank «benefited from higher rates and the investments we are making in our businesses,» according to Wells Fargo CEO Charlie Scharf. For Palo Alto, the consensus sales estimate for the current quarter of $1.84 billion indicates a year-over-year change of +17.8%.
In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects. What’s more, the company’s full-year billings forecast of $10.95 billion also exceeded the $10.8 billion consensus estimate, which would be an increase of 19% over the know how to start drone software development prior year. It is also worth noting that Palo Alto’s remaining performance obligations (RPO) increased 30% year over year to $10.6 billion, exceeding the growth in its actual revenue. The solid growth in this metric means that Palo Alto’s revenue pipeline expanded impressively, as the RPO refers to the total value of future contracts that are yet to be fulfilled.
All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Past performance is not a guarantee of future results, and a loss of original capital may occur. None of the information presented should be construed as an offer to sell or buy any particular security. HP Inc. said the company sees 2% to 4% long-term annual revenue growth, with earnings per share growth in the high single digit percentage range. The PC and printer company made the forecast Tuesday afternoon at a meeting with securities analysts in Palo Alto, Calif.