Trade-Ideas: Palo Alto Networks (PANW) Is Today's Post-Market Leader Stock

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 Palo Alto Networks ( PANW) as a post-market leader 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 $52.9 million.
  • PANW is up 6.7% today from today's close.

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More details on PANW:

Palo Alto Networks, Inc. offers a network security platform in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company's platform comprises Next-Generation Firewall that delivers application, user, and content visibility and control. Currently there are 11 analysts that rate Palo Alto Networks a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Palo Alto Networks has been 1.1 million shares per day over the past 30 days. Palo Alto has a market cap of $3.3 billion and is part of the technology sector and computer hardware industry. Shares are down 15.4% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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 the company's poor growth in earnings per share.

Highlights from the ratings report include:
  • PALO ALTO NETWORKS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PALO ALTO NETWORKS INC reported poor results of -$0.41 versus -$0.06 in the prior year. This year, the market expects an improvement in earnings ($0.41 versus -$0.41).
  • The net income has significantly decreased by 244.3% when compared to the same quarter one year ago, falling from -$4.60 million to -$15.84 million.
  • Compared to where it was trading one year ago, PANW is down 19.00% to its most recent closing price of 44.92. Looking ahead, our view is that this stock still does not have good upside potential and may even suffer further declines.
  • PANW has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, PANW has a quick ratio of 2.46, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for PALO ALTO NETWORKS INC is currently very high, coming in at 75.45%. It has increased from the same quarter the previous year.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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