Trade-Ideas LLC identified

Palo Alto Networks

(

PANW

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Palo Alto Networks as such a stock due to the following factors:

  • PANW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $240.3 million.
  • PANW is down 8.2% today from today's close.

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More details on PANW:

Palo Alto Networks, Inc. provides enterprise security platform to enterprises, service providers, and government entities worldwide. Currently there are 26 analysts that rate Palo Alto Networks a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Palo Alto Networks has been 1.7 million shares per day over the past 30 days. Palo Alto has a market cap of $12.9 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.25 and a short float of 8.7% with 3.84 days to cover. Shares are down 17.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Palo Alto Networks as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 45.3% when compared to the same quarter one year ago, falling from -$43.01 million to -$62.50 million.
  • The share price of PALO ALTO NETWORKS INC has not done very well: it is down 12.08% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Communications Equipment industry and the overall market, PALO ALTO NETWORKS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for PALO ALTO NETWORKS INC is currently very high, coming in at 74.93%. Regardless of PANW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PANW's net profit margin of -18.67% significantly underperformed when compared to the industry average.
  • PANW's debt-to-equity ratio of 0.84 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.03 is sturdy.

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