Palo Alto Stock Buy Hold or Sell Recommendation

PANW
 Stock
  

USD 526.88  10.37  2.01%   

Given the investment horizon of 90 days and complete risk avoidance on your part, our recommendation regarding Palo Alto Networks is 'Strong Sell'. Macroaxis provides Palo Alto buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding PANW positions. The advice algorithm takes into account all of Palo Alto's available fundamental, technical, and predictive indicators you will find on this site.
  
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
Strong Sell

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very 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 Mean Deviation of 2.25, Semi Deviation of 2.94, Standard Deviation of 3.04, Variance of 9.26, Downside Variance of 9.37 and Semi Variance of 8.63
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 7.26 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

The company currently holds 3.95 B in liabilities. Palo Alto Networks has a current ratio of 0.73, 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 5.17 B. Net Loss for the year was (389.6 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 89.0% of the company shares are owned by institutional investors
Latest headline from MacroaxisInsider: Sale by Lee Klarich of 4135 shares of Palo Alto

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 Price632.58
Target Median Price625.00
Target High Price823.00
Recommendation Mean1.70
Number Of Analyst Opinions34
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 Return0.17Value At Risk-4.65
Potential Upside4.51Standard Deviation3.04
   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
Vanguard Group IncCommon Shares7.7 M3.8 B
Blackrock IncCommon Shares5.5 M2.7 B
Clearbridge Investments LlcCommon Shares2.2 M1.1 B
Citigroup IncPut OptionsM969.3 M
Barclays PlcCommon Shares1.8 M898 M
Fmr LlcCommon Shares1.8 M873.4 M
Bank Of America CorpCommon Shares1.7 M820.8 M
Allianz Asset Management GmbhCommon Shares1.2 M613.6 M
Allianz Asset Management GmbhDebt261.6 M454.4 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
0.06
β
Beta against DOW1.53
σ
Overall volatility
2.96
Ir
Information ratio 0.0305

Palo Alto Volatility Alert

Palo Alto Networks shows above-average downside volatility for the selected time horizon. We advise investors to inspect Palo Alto Networks further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Palo Alto future alpha. 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" href="/stock-options/PANW/Palo-Alto-Networks">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" href="/stock-options/PANW/Palo-Alto-Networks">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" href="/stock-options/PANW/Palo-Alto-Networks">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(58.38) %(0.31) %
Return On Asset(1.40) %(0.14) %
Profit Margin(7.54) %(1.27) %
Operating Margin(0.02) %(5.51) %
Current Valuation50.03 B16.62 B
Shares Outstanding99.64 M571.82 M
Shares Owned by Insiders1.79 %10.09 %
Shares Owned by Institutions89.29 %39.21 %
Number of Shares Shorted7.26 M4.71 M
Price to Earning(55.17) X28.72 X
Price to Book147.60 X9.51 X
Price to Sales9.71 X11.42 X
Revenue5.17 B9.43 B
Gross Profit2.98 B27.38 B
EBITDA(1.1 M)3.9 B
Net Income(389.6 M)570.98 M
Cash and Equivalents3.87 B2.7 B
Cash per Share38.89 X5.01 X
Total Debt3.95 B5.32 B
Current Ratio0.74 X2.16 X
Book Value Per Share3.39 X1.93 K
Cash Flow from Operations1.79 B971.22 M
Short Ratio5.39 X4.00 X
Earnings Per Share(3.98) X3.12 X
Price to Earnings To Growth2.41 X4.89 X
Number of Employees11.87 K18.84 K
Beta1.18-0.15
Market Capitalization50.19 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
   Sale by Lee Klarich of 4135 shares of Palo Alto [view details]

Palo Alto Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Palo 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 Distribution13455.17
Daily Balance Of Power1.217136
Rate Of Daily Change1.02
Day Median Price525.36
Day Typical Price525.87
Market Facilitation Index0.0
Price Action Indicator6.7

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

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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Is Palo Alto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Palo Alto. If investors know Palo 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
52.9 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.