Palo Alto Stock Buy Hold or Sell Recommendation

PANW
 Stock
  

USD 514.96  6.18  1.19%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Palo Alto Networks is 'Hold'. Macroaxis provides Palo Alto buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PANW positions. The advice algorithm takes into account all of Palo Alto's available fundamental, technical, and predictive indicators you will find on this site.
  
Refresh
The advice is provided from Palo Alto's buy-and-hold perspective. Please check Palo Alto Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Palo Alto and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Palo Alto Networks.

Execute Palo Alto Buy or Sell Advice

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

Time Horizon

Risk Tolerance

Execute Advice
Sell Palo AltoBuy Palo Alto
Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Palo Alto Networks has a Risk Adjusted Performance of (0.08), Jensen Alpha of 0.0658, Total Risk Alpha of 0.2406 and Treynor Ratio of (0.15)
Macroaxis provides advice on Palo Alto Networks to complement and cross-verify current analyst consensus on Palo Alto Networks. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Palo Alto is not overpriced, please check all Palo Alto Networks fundamentals, including its total debt, and the relationship between the revenue and price to earnings to growth . Given that Palo Alto Networks has a number of shares shorted of 7.68 M, we recommend you to check out Palo Alto Networks market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Palo Alto Trading Alerts and Improvement Suggestions

Palo Alto Networks generated a negative expected return over the last 90 days
Palo Alto Networks has high historical volatility and very poor performance
The company currently holds 3.96 B in liabilities. Palo Alto Networks has a current ratio of 0.65, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Palo Alto until it has trouble settling it off, either with new capital or with free cash flow. So, Palo Alto's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Palo Alto Networks sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Palo Alto to invest in growth at high rates of return. When we think about Palo Alto's use of debt, we should always consider it together with cash and equity.
The entity reported the previous year's revenue of 4.86 B. Net Loss for the year was (461.5 M) with profit before overhead, payroll, taxes, and interest of 2.98 B.
Palo Alto Networks has a strong financial position based on the latest SEC filings
Over 88.0% of the company shares are owned by institutional investors
Latest headline from seekingalpha.com: Palo Alto Stock Outperforming The Market Could Be Challenging - Seeking Alpha

Palo Alto current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Palo Alto analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Palo Alto analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price649.20
Target Median Price635.10
Target High Price823.00
Recommendation Mean1.70
Number Of Analyst Opinions35
Target Low Price510.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Palo Alto Returns Distribution Density

The distribution of Palo Alto's historical returns is an attempt to chart the future uncertainty of Palo Alto's future price movements. The chart of the probability distribution of Palo Alto stock daily returns describes the distribution of returns around its average expected value. We use Palo Alto Networks price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Palo Alto returns is essential to provide solid investment advice for Palo Alto stock.
Mean Return-0.2Value At Risk-4.68
Potential Upside5.05Standard Deviation3.27
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Palo Alto historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Palo Alto Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Palo Alto is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Palo Alto Networks backward and forwards among themselves. Palo Alto's institutional investor refers to the entity that pools money to purchase Palo Alto's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Chemung Canal Trust CoCommon Shares11.5 K5.7 M
Modus Advisors LlcCommon Shares5.7 K2.8 M
Vanguard Group IncCommon Shares7.6 M4.7 B
Blackrock IncCommon SharesM3.7 B
Morgan StanleyCommon Shares3.1 M1.9 B
Clearbridge Investments LlcCommon Shares2.5 M1.6 B
Wellington Management Group LlpCommon Shares2.4 M1.5 B
Citigroup IncPut OptionsM1.2 B
Linden Advisors LpDebt562.4 M1.2 B
Susquehanna International Group LlpCall Options1.6 M974.5 M
Note, although Palo Alto's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Palo Alto Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(72.5 M)(163.4 M)(112 M)(131.2 M)(118.08 M)(121.19 M)
Depreciation Amortization and Accretion42.8 M59.8 M96.4 M153.8 M176.87 M190.83 M
Net Cash Flow or Change in Cash and Cash Equivalents358.6 M10.2 M1.76 B(1.54 B)(1.39 B)(1.43 B)
Issuance Purchase of Equity Shares45.3 M(364.6 M)(61.1 M)(258.3 M)(232.47 M)(238.59 M)
Net Cash Flow from Financing1.25 B(773.9 M)673 M(1.1 B)(1.27 B)(1.3 B)
Net Cash Flow from Investing(520 M)(1.83 B)288 M(1.48 B)(1.7 B)(1.75 B)
Net Cash Flow Investment Acquisitions and Disposals(266.4 M)(218.5 M)(33.9 M)(921 M)(828.9 M)(850.71 M)
Net Cash Flow from Operations1.04 B1.06 B1.04 B1.5 B1.35 B1.46 B
Share Based Compensation392.8 M474.5 M496.7 M567.7 M652.86 M704.4 M

Palo Alto Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Palo Alto or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Palo Alto stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Palo Alto stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.07
β
Beta against DOW1.41
σ
Overall volatility
3.36
Ir
Information ratio -0.0044

Palo Alto Volatility Alert

Palo Alto Networks exhibits very low volatility with skewness of 0.05 and kurtosis of 0.79. However, we advise investors to further study Palo Alto Networks technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Palo Alto's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Palo Alto's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Palo Alto Implied Volatility

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

Palo Alto Fundamentals Vs Peers

Comparing Palo Alto's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Palo Alto's direct or indirect competition across all of the common fundamentals between Palo Alto and the related equities. This way, we can detect undervalued stocks with similar characteristics as Palo Alto or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Palo Alto's fundamental indicators could also be used in its relative valuation, which is a method of valuing Palo Alto by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Palo Alto to competition
FundamentalsPalo AltoPeer Average
Return On Equity(79.91) %(0.31) %
Return On Asset(1.85) %(0.14) %
Profit Margin(9.50) %(1.27) %
Operating Margin(6.07) %(5.51) %
Current Valuation55.89 B16.62 B
Shares Outstanding98.67 M571.82 M
Shares Owned by Insiders1.85 %10.09 %
Shares Owned by Institutions88.32 %39.21 %
Number of Shares Shorted7.68 M4.71 M
Price to Earning(55.17) X28.72 X
Price to Book96.68 X9.51 X
Price to Sales10.32 X11.42 X
Revenue4.86 B9.43 B
Gross Profit2.98 B27.38 B
EBITDA(66.6 M)3.9 B
Net Income(461.5 M)570.98 M
Cash and Equivalents3.34 B2.7 B
Cash per Share33.92 X5.01 X
Total Debt3.96 B5.32 B
Current Ratio0.66 X2.16 X
Book Value Per Share5.26 X1.93 K
Cash Flow from Operations1.68 B971.22 M
Short Ratio6.22 X4.00 X
Earnings Per Share(5.26) X3.12 X
Price to Earnings To Growth2.62 X4.89 X
Number of Employees11.53 K18.84 K
Beta1.28-0.15
Market Capitalization50.15 B19.03 B
Total Asset2.86 B29.47 B
Retained Earnings(832.15 M)9.33 B
Working Capital927.2 M1.48 B
Current Asset1.77 B9.34 B
Current Liabilities846.8 M7.9 B
   Palo Alto exotic insider transaction detected [view details]

Palo Alto Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Palo Alto . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution37344.61
Daily Balance Of Power(0.45)
Rate Of Daily Change0.99
Day Median Price518.63
Day Typical Price517.4
Market Facilitation Index0.0
Price Action Indicator(6.75)

About Palo Alto Buy or Sell Advice

When is the right time to buy or sell Palo Alto Networks? Buying financial instruments such as Palo Alto Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Palo Alto investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable63.6 M56.9 M51.21 M55.25 M
Receivables1.04 B1.24 B1.12 B1.2 B

Use Investing Ideas to Build Portfolios

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

Did You Try This Idea?

Run Russia On Wall Street Thematic Idea Now

Russia On Wall Street
Russia On Wall Street Theme
Cross-sector and cross-instrument bundle of publicly traded Russian entities that are expected to be listed on USA exchanges or over the counter. The Russia On Wall Street theme has 19 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Russia On Wall Street Theme or any other thematic opportunities.
View All  Next Launch Russia On Wall Street
Please check Palo Alto Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Palo Alto Networks information on this page should be used as a complementary analysis to other Palo Alto's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for Palo Alto Stock analysis

When running Palo Alto Networks price analysis, check to measure Palo Alto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Palo Alto is operating at the current time. Most of Palo Alto's value examination focuses on studying past and present price action to predict the probability of Palo Alto's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Palo Alto's price. Additionally, you may evaluate how the addition of Palo Alto to your portfolios can decrease your overall portfolio volatility.
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Is Palo Alto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Palo Alto. If investors know Palo Alto will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Palo Alto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
52.3 B
Quarterly Revenue Growth YOY
0.29
Return On Assets
-0.014
Return On Equity
-0.58
The market value of Palo Alto Networks is measured differently than its book value, which is the value of Palo Alto that is recorded on the company's balance sheet. Investors also form their own opinion of Palo Alto's value that differs from its market value or its book value, called intrinsic value, which is Palo Alto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Palo Alto's market value can be influenced by many factors that don't directly affect Palo Alto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Palo Alto's value and its price as these two are different measures arrived at by different means. Investors typically determine Palo Alto value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Palo Alto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.