With artificial intelligence powering – and endangering – global computer networks, four cybersecurity stocks have found a spot on the Investor's Business Daily Breakout Stocks Index. Alongside CrowdStrike, CyberArk Software, and Rubrik, Precision AI provider Palo Alto Networks has found its way onto this screen.
On the heels of two AI innovations and a new acquisition by the cybersecurity firm, Palo Alto stock remains in buy range from a breakout earlier this month.
Palo Alto Networks Secures AI Growth
Based in Santa Clara, Calif., Palo Alto Networks serves over 70,000 organizations in more than 170 countries. The company focuses on network security, cloud security, and security operations.
In April alone, Palo Alto announced two AI-focused innovations and one acquisition.
On April 28, the company unveiled the industry's first AI-driven SecOps platform to span proactive and reactive security. The just-released Cortex XSIAM 3.0 builds on a platform Palo Alto Networks launched three years ago. The latest enhancement bolsters the platform with proactive exposure management and advanced email security.
Palo Alto also introduced Prisma AIRS for AI security. From apps and agents to models and data, Prisma AIRA aims protect an entire enterprise AI ecosystem.
The cybersecurity firm also said it plans to acquire Protect AI. The goal of the purchase is to expand Palo Alto's ability to guard against dynamic new attacks created by the explosion of AI.
See Who Joins Palo Alto And CrowdStrike On The IBD Breakout Stocks Index
Palo Alto Stock Cracks Breakout Code
On May 20, Palo Alto Networks reported fiscal third-quarter results, edging by Wall Street estimates for sales and earnings. The company posted 15% revenue growth to just under $2.9 billion. Earnings grew 21% to 80 cents per share.
For the full fiscal year, analysts forecast 15% earnings growth to $3.27 per share.
Palo Alto stock reset its base count in April by undercutting the low in its prior pattern. That makes its new cup-with-handle a first-stage base. Such early-stage formations have the highest likelihood of success.
Palo Alto stock cleared the 195.42 buy point on June 3. On Wednesday, shares slipped but remain within buy range.
In another sign of rising technical strength, the 21-day exponential moving average has climbed back above the longer-term 50-day line. Building on that gathering strength, the 50-day line is popping back above the 200-day benchmark.
Showcasing other cybersecurity stocks to watch, CyberArk also trades within its buy zone. CrowdStrike and Rubrik are both extended from their recent breakouts, but the latter has dropped below its 21-day line.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
