Palo Alto Stock Performance

PANW
 Stock
  

USD 527.77  0.89  0.17%   

On a scale of 0 to 100, Palo Alto holds a performance score of 5. The company holds a Beta of 1.5266, which implies a somewhat significant risk relative to the market. Let's try to break down what Palo Alto's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Palo Alto will likely underperform. Although it is important to respect Palo Alto Networks current trending patterns, it is better to be realistic regarding the information on the equity's existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Palo Alto Networks technical indicators, you can presently evaluate if the expected return of 0.22% will be sustainable into the future. Please employ Palo Alto Networks value at risk, as well as the relationship between the kurtosis and market facilitation index to make a quick decision on whether Palo Alto historical price patterns will revert.
  
Palo Alto Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Palo Alto Networks are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Palo Alto showed solid returns over the last few months and may actually be approaching a breakup point. ...more

Palo Alto Price Channel

Quick Ratio0.67
Fifty Two Week Low358.37
Target High Price823.00
Fifty Two Week High640.90
Target Low Price510.00

Palo Alto Relative Risk vs. Return Landscape

If you would invest  47,327  in Palo Alto Networks on May 17, 2022 and sell it today you would earn a total of  5,450  from holding Palo Alto Networks or generate 11.52% return on investment over 90 days. Palo Alto Networks is currently generating 0.217% in daily expected returns and assumes 2.9837% risk (volatility on return distribution) over the 90 days horizon. In different words, 25% of stocks are less volatile than Palo Alto, and 96% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Palo Alto is expected to generate 2.38 times more return on investment than the market. However, the company is 2.38 times more volatile than its market benchmark. It trades about 0.07 of its potential returns per unit of risk. The DOW is currently generating roughly 0.05 per unit of risk.

Palo Alto Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Palo Alto's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Palo Alto Networks, and traders can use it to determine the average amount a Palo Alto's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0727

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Estimated Market Risk
 2.98
  actual daily
 
 25 %
of total potential
 
2525
Expected Return
 0.22
  actual daily
 
 4 %
of total potential
 
44
Risk-Adjusted Return
 0.07
  actual daily
 
 5 %
of total potential
 
55
Based on monthly moving average Palo Alto is performing at about 5% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Palo Alto by adding it to a well-diversified portfolio.

About Palo Alto Performance

To evaluate Palo Alto Networks Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Palo Alto generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Palo Alto Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Palo Alto Networks stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Palo Alto's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Investment(6.70) (7.23) 
Return on Average Assets(4.65) (5.02) 
Return on Average Equity(61.51) (63.13) 
Return on Invested Capital 0.0027  0.002913 
Return on Sales 0.00345  0.003723 
Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software Panorama, a security management solution for the control of firewall appliances and software deployed on an end-customers network and instances in public or private cloud environments, as a virtual or a physical appliance and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, uniform resource locator filtering, laptop and mobile device protection, and firewall and DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security analytics and automation, and threat intelligence and cyber security consulting professional services, including architecture design and planning, implementation, configuration, and firewall migration education services, such as certifications, as well as online and in-classroom training and support services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.

Things to note about Palo Alto Networks

Checking the ongoing alerts about Palo Alto for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Palo Alto Networks help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Palo Alto Alerts

Equity 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
Please check Your Equity Center. 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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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.
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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
52.5 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.