Palo Alto Networks Stock Surges Amid Hot Cybersecurity Market
Cybersecurity is front and center for businesses and individuals alike as Russia's war on Ukraine drags on and as hackers around the world devise ever more sophisticated attacks. Palo Alto Networks (PANW) is on the front lines of cybersecurity and among the top-ranked companies in the group. On Wednesday, the Relative Strength Rating for Palo Alto Networks stock shot up to 85, making it a good prospect to add to a stock watchlist.
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The upgraded 85 RS Rating means that Santa Clara, Calif.-based Palo Alto Networks stock is among the top 15% for price performance. Over 100 years of market history reveals that the best-performing stocks often have an RS Rating over 80 in the early stages of their moves.
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Palo Alto Networks Stock Tops Key Benchmarks
Palo Alto Networks stock was up more than 3% Wednesday afternoon, above 527, on track for its sixth straight higher close. During that time it's topped its 50-day average line and is on the brink of rising above its 200-day. It's building a consolidation pattern with a 641 buy point. See if the stock can clear the breakout price in volume at least 40% higher than normal.
Earnings Growth Accelerates
Earnings growth moved up last quarter from 12% the prior quarter to 30%, or $1.79 per share. Revenue grew 29% year over year to $1.39 billion. The company has scheduled an analysts conference call after the market closes on Aug. 22 to discuss its fiscal Q4 earnings numbers.
Palo Alto Networks stock holds the No. 3 rank among its peers in the Computer Software-Security industry group. Fortinet (FTNT) and Qualys (QLYS) are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique rating measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
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