Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high 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 $135.9 million.
- PANW has traded 11,931 shares today.
- PANW is trading at a new lifetime high.
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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 21 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 2.1 million shares per day over the past 30 days. Palo Alto has a market cap of $8.6 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 5.1% with 3.00 days to cover. Shares are up 89.7% year-to-date as of the close of trading on Thursday.
rates Palo Alto Networks as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- PANW's very impressive revenue growth greatly exceeded the industry average of 4.3%. Since the same quarter one year prior, revenues leaped by 58.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, PANW's share price has jumped by 147.93%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- PANW's debt-to-equity ratio of 1.00 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.61 is very high and demonstrates very strong liquidity.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness 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.
- Net operating cash flow has significantly decreased to -$26.15 million or 162.66% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Palo Alto Networks Ratings Report.