As cloud computing continues to heighten the risk and complexity of cyberattacks, cybersecurity leader Palo Alto Networks fights back with artificial intelligence. Two recent AI-powered enhancements have PANW stock securing a new buy point.
Joining fellow cybersecurity leader Fortinet, Palo Alto Networks made this month's list of new buys by the best mutual funds. Top money managers scooped up an impressive $578 million worth of PANW stock. FTNT stock took in an estimated $102 million.
Both Silicon Valley-based companies earn the highest-possible 99 Composite Rating, topping all other cybersecurity stocks in IBD Stock Checkup.
Palo Alto Networks was featured as the IBD Stock Of The Day on March 20. Industry peer Tenable secured that same honor to kick off the new week.
Shining more light on Palo Alto's rebound from last year's bear market, PANW stock has grabbed a spot on IBD Leaderboard and the IBD Big Cap 20.
PANW Stock Leads Cybersecurity Firms In Demand
With their relative strength lines rising sharply to show clear market leadership, Palo Alto Networks and Fortinet have established pre-eminence among their cybersecurity peers.
In addition to taking in large investments from the best-performing money managers, the metrics below confirm institutional demand for FTNT and PANW stock.
The Accumulation/Distribution Rating tracks buying and selling by mutual funds and other large investors over the past 13 weeks. Palo Alto's A- rating indicates heavy buying during that period.
The up/down volume ratio covers 50 days of trading, dividing total volume on up days by total volume on down days. A number above 1.0 points to demand.
| Company | Symbol | Composite Rating | Acc/Dis Rating | Up/down volume ratio | On New Buys By Top Funds list |
|---|---|---|---|---|---|
| Palo Alto Networks | PANW | 99 | A- | 1.9 | Yes |
| Fortinet | FTNT | 99 | B | 1.8 | Yes |
| Nice | NICE | 90 | C- | 0.8 | No |
| Qualys | QLYS | 88 | B- | 1.1 | No |
| Tenable | TENB | 88 | B | 1.3 | No |
How To Handle Changing Stock Market Trends
Palo Alto Networks Drives 81% Growth And AI-Powered Security
Providing next-gen cybersecurity to thousands of customers, Palo Alto Networks is a global giant in the space.
From 5G and IoT security to safeguarding transactions in the cloud and providing data security, Palo Alto Networks assists clients across every major sector.
In recent weeks, the company has announced two new AI innovations to further enhance cybersecurity.
On March 15, Palo Alto Networks announced new AI-powered capabilities to boost its secure access service edge (SASE) solutions.
On Feb. 27, the company introduced its most comprehensive Zero Trust OT Security solution. Built on an AI-powered foundation focused on ease of deployment, the new solution enables customers to secure their operational technology (OT) environments from the most sophisticated threats while simplifying their operations.
The global need for cybersecurity helps Palo Alto Networks drive solid and steady sales growth. Over the last eight quarters, revenue increases have ranged from 24% to 32%.
Earnings have been on the rise in recent quarters, jumping 81% to $1.05 per share in the latest report.
PANW Stock Hacks Away At Buy Zone
With its relative strength line at a new 52-week high, Palo Alto Networks continues to trade right around its 192.94 buy point.
After gapping up in big volume on its Feb. 21 earnings report, PANW stock has held and built on that move — a positive sign of strength and demand among large investors.
The stock trades well above its 21-day and 50-day moving averages, both of which continue to climb.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
