NEW YORK (TheStreet) -- Palo Alto Networks (PANW) - Get Report stock is higher by 0.43% to $128.49 in early-afternoon trading on Thursday, before releasing its 2016 second quarter earnings after today's market close.
The network and enterprise security company is expected to report a year-over-year rise in both earnings and revenue.
Analysts surveyed by Thomson Reuters are looking for earnings of 39 cents per share on revenue of $318.32 million for the quarter.
Last year, Palo Alto Networks reported adjusted earnings of 19 cents per share on revenue of $217.7 million for the 2015 second quarter.
Shares of Palo Alto have declined to the point where it's "entirely possible" they could act as a coiled spring after the company releases earnings, TheStreet's Jim Cramer explains in the above video.
However, it's difficult to determine whether investors will buy high-multiple stocks, he noted. Shares also will be at the mercy of oil prices.
Cramer prefers Action Alerts PLUS holding Cisco (CSCO), which he notes has a very good yield and is a lower-risk way to play cyber.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Palo Alto Networks's weaknesses include its unimpressive growth in net income and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: PANW
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.