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 $269.8 million.
  • PANW is down 5.4% 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 23 analysts that rate Palo Alto Networks a buy, no analysts rate it a sell, and 4 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 $12.5 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.05 and a short float of 5.1% with 2.15 days to cover. Shares are down 17.8% 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

. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

Highlights from the ratings report include:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Communications Equipment industry average. The net income has significantly decreased by 28.7% when compared to the same quarter one year ago, falling from -$30.07 million to -$38.70 million.
  • 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.
  • PANW's debt-to-equity ratio of 0.91 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 0.89 is weak.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • PALO ALTO NETWORKS INC's earnings per share declined by 18.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PALO ALTO NETWORKS INC continued to lose money by earning -$2.02 versus -$3.03 in the prior year. This year, the market expects an improvement in earnings ($1.76 versus -$2.02).

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