PANW shares look expensive but are actually a great deal

PANW shares look expensive but are actually a great deal
PANW Stock: Palo Alto Networks Stock Looks Expensive, But It's Actually a Great Deal

Source: Diverse Photography / Shutterstock.com

based in California Palo Alto Networks (NASDAQ:PANW) specializes in providing best-in-class cybersecurity solutions. Some people may balk at the idea of ​​buying a $500 share. However, PANW shares are excellent value at their current price.

With the emergence of Covid-19, more companies have brought their operations online. Consequently, there has been a strong demand for reliable security for networks, including cloud-based ones.

Palo Alto’s share price has risen substantially over the past two years, but value seekers should not be discouraged. Given Palo Alto Networks’ impressive revenue growth and expanded line of cloud security products, investors should prepare for many more upsides.

PANW Palo Alto Networks $510.71

What’s going on with PANW stock?

Before skeptics complain about Palo Alto’s stock price, let’s put things in perspective. Given that PANW shares have reached $640.90 over the last 12 months, the current share price is not far fetched.

Additionally, this is a company that has earned its share price through demonstrated revenue growth. Specifically, Palo Alto Networks increased your income during the third fiscal quarter of 2022 by 29% year over year to $1.4 billion. Not only that, but the company increased its quarterly revenue by 40% year over year to $1.8 billion.

In light of these outstanding results, it makes perfect sense that Palo Alto Networks raised its full fiscal year 2022 guidance. Therefore, the company expects total revenue in the range of $5.481 billion to $5.501 billion, which marks year-over-year growth of around 29%. Also for the full year, Palo Alto anticipates total revenue in the range of $7.106 billion to $7.136 billion, an increase of 30% to 31% compared to the prior year.

Reduced complexity and increased visibility

Here is an amazing statistic. A Palo Alto Networks blog post revealed a study of 18,000 cloud accounts that found that “99% of cloud users, roles, services, and resources were given excessive permissions, that were left unused.”

The point here is that there are holes in many companies’ security protection systems. These companies could be vulnerable to identity theft and ransomware attacks.

To help address this issue, the Palo Alto Network has added Out-of-band web application and security API (Application Programming Interface) for Prisma Cloud. With this addition, Prisma Cloud helps uncover accounts with excessive privileges and provides better protection against threats.

Ankur Shah, Senior Vice President of Prisma Cloud, Palo Alto Networks, further explained the value of this addition. “As more organizations move workloads to the cloud, the capabilities that make up Prisma Cloud help provide the most comprehensive protection, reducing complexity and increasing visibility across infrastructure, workloads, identities and applications. Shah said.

what you can do now

It is true that some of the terminology in the world of cloud security is complex. However, you don’t have to be a cybersecurity buff to hold PANW shares with confidence.

The important thing is to be able to spot a good value when you see it. Palo Alto Networks shares have room to rise as the company demonstrates financial growth.

Additionally, the company continues to provide top-of-the-line threat detection and prevention software. So, at the end of the day, an investment in Palo Alto Networks really isn’t expensive at all.

As of the date of publication, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (directly or indirectly) any position in the securities mentioned in this article.

Leave a Comment