Stock Market Sentiment Towards Palo Alto Networks: Bullish or Bearish on Wall Street?
Palo Alto Networks (PANW), a global cybersecurity company headquartered in Santa Clara, California, has seen its stock performance trail both the broader market and many of its peers over the past year.
As of the publication date, the company's stock has risen by approximately 10.5%, which is notably below the S&P 500 Index's gain of 21.9% over the same period. In 2025 year-to-date, PANW's stock has declined by 7.6%, while the S&P 500 Index has risen by 7.8%.
Analysts project PANW's fiscal year 2025 earnings per share (EPS) at approximately $1.76, reflecting solid growth from previous years. The company posted a trailing twelve months (TTM) EPS around 1.74 and reported a strong revenue increase of 16.46% in 2024 compared to the prior year. The price-to-earnings (PE) ratio stands high around 96 to 100, with a PEG ratio of 3.96, showing high valuation relative to expected growth.
In comparison to the iShares Cybersecurity and Tech ETF (IHAK), direct data was not found. However, within the cybersecurity sector, PANW’s stock performance has trailed many of the best-performing cybersecurity stocks listed, such as Cloudflare, Broadcom, and Crowdstrike. This suggests PANW has underperformed relative to top cybersecurity peers and potentially relative to related ETFs heavily weighted in such names.
Despite the underperformance in stock performance, PANW's strong expected earnings growth justifies its high valuation. The company's recent acquisition of CyberArk for $25 billion is aimed at strengthening its portfolio in identity and access management, a move that analysts have described as "transformative."
On July 31, DA Davidson's Rudy Kessinger lowered Palo Alto Networks' (PANW) price target to $215 from $225 but maintained a "Buy" rating. As investors focus on growth outlook and forward guidance for fiscal 2026, the company's earnings performance and strategic initiatives will be critical for future stock moves.
| Metric | Palo Alto Networks (PANW) | S&P 500 Index | Cybersecurity ETF / Peers | |--------------------------------|---------------------------------|-----------------------------|-------------------------------------| | 1-Year Stock Performance | +10.5% | +21.9% | Cybersecurity leaders up to +156%+ | | 2025 Year-to-Date Stock Change | -7.6% | +7.8% | Not explicitly given | | Expected FY 2025 EPS | ~$1.76 (growth expected) | N/A | N/A | | Valuation (PE/PEG) | PE ~96-100, PEG ~3.96 | Lower generally in S&P 500 | Varies, often high for sector stocks|
It is important to note that all information and data in this article is solely for informational purposes. As of the publication date, Kritika Sarmah did not have any positions in any of the securities mentioned in this article. For more information, please view the website's Disclosure Policy here.
- Investors may want to consider the performance of Palo Alto Networks (PANW) in the context of other technology and finance sectors, as its stock has underperformed relative to the S&P 500 Index, and many cybersecurity leaders, while its high valuation is justified by expected earnings growth.
- When examining investment opportunities in the cybersecurity sector, potential investors should be aware of Palo Alto Networks' (PANW) stock performance compared to other leading cybersecurity companies, ETFs, and even technology peers, as the company's stock has not outperformed many of its peers, such as Cloudflare, Broadcom, and Crowdstrike.
