Palo Alto Networks, Inc. (NASDAQ:PANW) shares are down Thursday as the broader market faces a slight downturn with S&P 500 futures down 0.5%.
Today, the company formed its first strategic alliance of this kind with a global systems integrator, NTT DATA. It targets $1 billion in combined business by the end of 2029.
The partnership marks a significant step in enhancing cybersecurity solutions through AI.
• Palo Alto Networks shares are under pressure. Why are PANW shares declining?
AI Security Alliance
The company aims to combine AI-powered security innovations with enterprise-scale consulting and managed services to help organizations navigate Frontier AI with integrated governance.
This alliance is designed to provide comprehensive support for organizations looking to implement advanced security measures in their operations.
The partnership integrates Palo Alto Networks’ AI-driven cybersecurity platforms with NTT DATA’s consulting, engineering and managed services, supported by joint engineering, co-innovation and coordinated global delivery to help customers evaluate cyber risks, deploy AI securely and continuously enhance their security posture through an integrated strategy, implementation and managed-services model.
With joint investments, more than 2,000 certified experts and dedicated Forward Deployed Engineers, the companies aim to simplify deployments and accelerate customer results.
PANW Technical Outlook: Trend, Momentum and Key Levels
From a technical perspective, Palo Alto Networks is currently trading at $353.01, which positions it 0.6% below its 20-day simple moving average (SMA) of $355.13. The stock is also trading 6.3% above its 50-day SMA of $332.16, indicating a strong upward trend over the medium term. The 12-month performance shows a remarkable gain of 95.07%, reflecting robust growth in the past year.
Momentum indicators reveal the Relative Strength Index (RSI) is at 52.49, suggesting a neutral stance in the current market conditions. This indicates that the stock is neither overbought nor oversold, allowing for potential movement in either direction. The 50-day SMA has recently crossed above the 200-day SMA, forming a golden cross, which is typically seen as a bullish signal for future price movements.
Key Resistance: $368.50 — Nearby level where rebounds can stall, aligning with recent pivot zones.
Key Support: $315 — Nearby level where buyers previously stepped in, tied to the 52-week low zone.
PANW Earnings Preview and Analyst Price Targets
The countdown is on: Palo Alto is set to report earnings on Sept. 1 (confirmed).
- EPS Estimate: 88 cents (Down from 95 cents)
- Revenue Estimate: $3.35 billion (Up from $2.54 billion)
- Valuation: P/E of 312.8x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price forecast of $346.79. Recent analyst moves include:
- Mizuho: Outperform (Raises target to $415 on Aug. 19)
- Stifel: Buy (Raises target to $415 on Aug. 19)
- UBS: Neutral (Raises target to $390 on Aug. 19)
How PANW Ranks On Value, Growth and Momentum
Below is the Benzinga Edge scorecard for Palo Alto Networks, highlighting its strengths and weaknesses compared to the broader market:
- Value: 3.09 — Trading at a steep premium relative to peers.
- Growth: 75.18 — Indicates strong growth potential.
- Momentum: 97.05 — Stock is outperforming the broader market.
The Verdict: Palo Alto Networks’ Benzinga Edge signal reveals a growth-heavy profile with strong momentum indicators. However, the value score suggests the stock is trading at a premium compared to its peers, which may warrant caution for value-focused investors.
PANW ETF Exposure and Passive Fund Flow Risk
- Amplify HYG High Yield 10% Target Income ETF (NYSE:HYG): 8.44% Weight
- First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR): 9.43% Weight
- Segall Bryant & Hamill Select Equity ETF (NYSE:USSE): 6.80% Weight
Significance: Because Palo Alto Networks carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
PANW Stock Price Action In Premarket Trading
PANW Stock Price Activity: Palo Alto Networks shares were down 1.88% at $353.01 at publication on Thursday, according to Benzinga Pro data.
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