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Hype Asset of the Day | March 24, 2022



Palo Alto (PANW)


As the world becomes more dependent on technology to make all aspects of our lives easier and more efficient, the need for Cybersecurity companies grows. US-based company Palo Alto Networks (PANW) offers a whole host of cybersecurity products including advanced firewalls and cloud security services. This trending stock has enjoyed a 106.9% increase in mentions over the past day, possibly signaling that buyer sentiment is shifting bullish. The current share price of Palo Alto is hovering around $606, up 11.45% YTD.


Positives


  • Over the past year, shares of Palo Alto have risen in price by an outstanding 87%.

  • It seems as though Palo Alto is optimistic about the future, with projected growth of around 25% each year for the next 5 years. Net income per share is also expected to grow to between $7.23 - $7.3.

  • Palo Alto is remaining strong and boasting explosive growth with its fiscal Q2 revenue up 30% against the previous year. Estimates currently expect the cybersecurity company’s top line to grow around 28% to $5.45 billion.

  • Palo Alto is one of the dominant companies in the security appliance sector, with a 15.2% market share, just behind competitor Cisco Systems at 15.3%.

  • Experts predict the global cybersecurity market could provide an additional $9 billion in revenue over the next four years, meaning Palo Alto’s share of the space could add a ton of cash to its balance sheet.



Negatives


  • Despite new business acquisitions, Palo Alto remains fairly dependent on its core security platform Strata. Although judging by their recent acquisitions they’re making an effort to reduce this dependence.

  • Despite boasting fairly solid financials, Palo Alto is unprofitable on a GAAP-adjusted basis.


Hype Asset of the Day - Conclusion


Palo Alto has solid financials and is clearly planning for the future. Despite lackluster GAAP-adjusted profits, the company’s series of recent acquisitions will likely help grow its revenue and reduce dependence on Strata. Both analysts and Palo Alto’s own estimates seem optimistic, which is exactly what an investor would hope for. Furthermore, a near 107% increase in mentions across major outlets could indicate an influx of investors is likely in the near future. To hear more about HypeIndex’s services check out our FAQ page, or if you want alerts straight to your inbox you can take a look at our premium plans.


HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.

The algorithm for our proprietary HypeIndex score is based on sentiment analysis, data science and machine learning.





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