Palo Alto Networks rises on CrowdStrike’s strong results
Palo Alto Networks rose about 3% Thursday after CrowdStrike posted stronger-than-expected fiscal second-quarter revenue and adjusted earnings, lifting cybersecurity shares. The stock also had bullish analyst support ahead of its Sept. 1 earnings report.
Palo Alto Networks Inc. (NASDAQ: PANW ) stock surged about 3% Thursday as strong peer earnings fueled a broader cybersecurity rally.
Bullish analyst sentiment also supported the stock ahead of the company’s Sept.
1 earnings report.
Nasdaq futures rose 0.82%, while S&P 500 futures gained 0.28%.
CrowdStrike Results Lift Cybersecurity Stocks The rally followed strong fiscal second-quarter results from CrowdStrike Holdings Inc. (NASDAQ: CRWD ).
The company released its results after Wednesday’s closing bell.
CrowdStrike reported revenue of $1.47 billion, beating the $1.44 billion estimate.
Adjusted earnings of 31 cents per share also topped the 29-cent estimate.
The results strengthened confidence in cybersecurity demand.
Investors have also favored large technology companies as spending on artificial intelligence infrastructure accelerates.
Technical Analysis Palo Alto Networks remains in a long-term uptrend.
At $356.75, the stock traded about 4.5% above its 50-day simple moving average of $341.36.
It also stood about 56% above its 200-day SMA of $228.74.
The 20-day SMA remains above the 50-day average.
In addition, the 50-day SMA crossed above the 200-day average in May.
Both signals support the longer-term bullish trend.
However, momentum has cooled.
The moving average convergence divergence indicator sits below its signal line.
Its histogram is also negative.
Therefore, the stock may need fresh buying pressure to extend its rally.
Resistance sits near $399, close to the 52-week high of $398.88.
Support stands near $315.
Earnings And Analyst Outlook Palo Alto Networks is scheduled to report earnings Sept.
1.
Wall Street expects earnings of 88 cents per share, down from 95 cents a year earlier.
Analysts forecast revenue of $3.35 billion, up from $2.54 billion.
The stock carries a Buy consensus rating and an average price forecast of $380.83.
BTIG maintained its Buy rating and $380 forecast Wednesday.
JPMorgan raised its forecast to $384 from a previous level and kept an Overweight rating Tuesday.
Benchmark lifted its forecast to $400 and maintained a Buy rating Monday.
Edge Rankings Palo Alto Networks has a momentum score of 97.03 and a growth score of 76, according to the Edge stock rankings.
However, its value score stands at just 3.38.
The scores reflect strong price performance and growth expectations.
Still, the company’s premium valuation raises the stakes for its earnings and guidance.
ETF Exposure Palo Alto Networks has a 9.43% weighting in the First Trust Nasdaq Cybersecurity ETF (NASDAQ: CIBR ).
It also accounts for 8.06% of the Global X Cybersecurity ETF (NASDAQ: BUG ) and 6.64% of the WisdomTree Cybersecurity Fund (NASDAQ: WCBR ).