Latest news with #Joao
CNBC
a day ago
- Business
- CNBC
CrowdStrike vs. Palo Alto Networks — why Wall Street values these stocks so differently
Here's our Club Mailbag email investingclubmailbag@ — so you send your questions directly to Jim Cramer and his team of analysts. We can't offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. This week's question: When I look at the forward P/E ratio of CrowdStrike, I wonder if this isn't too elevated when compared to PANW? Thanks, Joao There is no doubt that CrowdStrike carries a demanding price-to-earnings multiple of 125 times next 12-month earnings-per-share estimates versus its cybersecurity peer Palo Alto Networks ' cheaper forward P/E of 54. However, whether CrowdStrike's P/E is "elevated" compared to Palo Alto Networks is subjective and comes down to what you, the investor, want to pay for future earnings. Both are Club names. The price-to-earnings ratio is a standard way to gauge whether a stock is undervalued, fairly valued, or overvalued when compared to historical performance, industry peers, growth rate, or the broader market. The P/E ratio is calculated by dividing a stock's current share price by earnings per share (EPS). While there are many different ways to look at P/Es, the two most common are on a trailing 12-month basis (actual EPS for the past four quarters) and a forward 12-month basis (estimated EPS for the next four quarters). We prefer forward P/Es because we're more interested in where earnings are going rather than where they've been. We want to weed out companies that are not growing from our investment choices. A higher P/E means investors are willing to pay more for each dollar of earnings, usually because they expect to see faster growth in the future. So, in the case of CrowdStrike versus Palo Alto Networks, what the market is telling us is that investors are willing to pay much more for the former's earnings. That dynamic is reflected in the incredible appetite for CrowdStrike shares, which have gained more than 40% year to date and hit an all-time intraday high of $484 on Tuesday. It will be put to the test after the closing bell when CrowdStrike reports earnings. Palo Alto stock has been no slouch this year — increasing more than 8% year to date and outperforming the S & P 500 's gain in 2025 of roughly 1.5%. CRWD PANW YTD mountain CrowdStrike vs. Palo Alto Networks YTD Investors are paying a premium for CrowdStrike because they believe it's growing faster and has more potential. CrowdStrike is primarily a software subscription model, and investors tend to pay up more for these kinds of recurring sales because they lead to higher margins over time. Palo Alto is a mix of hardware, which tends to be more cyclical and subject to lower multiples, and software. The company has been making strides in its focus on platformization — being a one-stop shop for all cybersecurity needs. To be sure, neither stock is particularly cheap when layering growth expectations, according to the PEG ratio, which takes the P/E and divides it by a company's projected long-term earnings growth rate. Based on the next three years of earnings estimates, we calculated a three-year earnings compounded annual growth rate (CAGR) estimate of 16.6% for CrowdStrike and 11.9% for Palo Alto. That translates to PEG ratios of 7.5 for CrowdStrike and 4.5 for Palo Alto. As a general rule, a PEG ratio of 1 or lower indicates getting good value for future growth. On the high side, a PEG of 2 or above suggests paying up for future growth. Yes, both stocks are expensive by this measure, but these two leaders in cybersecurity have earned this premium over time. Cybersecurity has proven to be one of the most attractive sub-sectors of tech to invest in because it is mission-critical for organizations of all sizes. The secular growth characteristics and software aspect make it even more appealing. Bottom line Jim Cramer does not prefer CrowdStrike over Palo Alto Networks — both are long-term holdings in the portfolio and leaders in the cybersecurity industry. When we initiated CrowdStrike in October 2024, we viewed it as a turnaround following a botched software update that touched off a global IT outage in July 2024. We thought the risk was manageable after CEO George Kurtz fought to reassure clients. The company did not lose a lot of business. Jim has said that Palo Alto Networks' platformization strategy under CEO Nikesh Arora remains one of the great secular growth stories of all time. The Club started a position in February 2023. (Jim Cramer's Charitable Trust is long PANW, CRWD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Daily Mirror
3 days ago
- Sport
- Daily Mirror
Brighton name price for Joao Pedro as Arsenal consider stunning transfer swoop
Arsenal are among the clubs interested in signing Brighton striker Joao Pedro and the Seagulls are willing to sell the 23-year-old for a fee of around £70million Brighton are reportedly willing to cash in on striker Joao Pedro if they receive a bid worth £70million. Pedro has impressed since joining Brighton from Watford in 2023, netting 30 goals in 70 appearances across all competitions. The 23-year-old scored ten Premier League goals last season, making him Brighton's joint top scorer alongside Kaoru Mitoma and Danny Welbeck. Pedro's form has earned him admirers across the Premier League, with Arsenal among those considering a move for the Brazilian. Arsenal are in the market for attacking reinforcements this summer and the club's co-chairman, Josh Kroenke, has vowed to back Mikel Arteta this summer. "We plan to invest to get behind winning and doing better next season," Kroenke said. "We're delighted we have our sporting director, Andrea [Berta], who will play an important role in this. He is part of a unified and strong team, supported by the board, who are crystal clear on exactly what we need to do and the way in which we want to do it. The right way. The Arsenal way." According to a report from the Sun, Brighton are open to selling Pedro but will only entertain offers around the £70m mark. Pedro is under contract until 2028, meaning Brighton are under no pressure to sell. The report adds that Newcastle, Liverpool and Aston Villa are also keen on signing the forward. Pedro was at the centre of some controversy last season after he was dropped by manager Fabian Hurzeler following a bust up with teammate Jan Paul van Hecke. "With Joao, we had a small issue in training, a type which isn't uncommon from time to time at all football clubs," Hurzeler said ahead of Brighton's final game of the season. "We dealt with it internally and the matter is closed. "Joao is an incredible football player, he is a match-winner for us and he is a great player and that's why we invested in him. But there are principles, there are values that are non-negotiable that count for everyone. "I don't make any compromises. I am sure that Joao is still a young player, there is still a lot of potential where he will grow. I am sure that he will learn from this and come back stronger next season. I am really looking forward to seeing him renewed and reinvigorated at his highest peak into our team. That is all I would say to this. The only thing is how we dealt with it as a football club, how we dealt with it as a team."
Metro
3 days ago
- Sport
- Metro
Arsenal and Chelsea learn price to sign target from Premier League rivals
Brighton forward Joao Pedro has been linked with both Arsenal and Chelsea (Picture: Getty) Arsenal and Chelsea have discovered what it would take to lure Joao Pedro away from Brighton. Both London clubs are on the hunt for attacking reinforcements in the summer transfer market and have been put on red alert by a potential deal for Pedro. Pedro has scored 30 goals in 70 games since joining Brighton in 2023 and is widely regarded to be among the most promising young forwards in Premier League football. The Seagulls' recruitment model has seen the likes of Alexis Mac Allister, Moises Caicedo and Yves Bissouma moved on for big money in recent years – and there is a feeling Pedro could be the next high-profile name out the exit door at the Amex Stadium. According to The Sun, Brighton would be 'willing to do business' should they receive an offer of around £70million for the highly rated Brazilian, who has been capped three times for his country. Get personalised updates on Arsenal everyday Wake up to find news on your club in your inbox every morning with Metro's Football Newsletter. Sign up to our newsletter and then select your team in the link we'll send you so we can get football news tailored to you. The south-coast outfit stand to make a tidy profit on Pedro given they signed the 23-year-old for a fee of £35m from Watford just two years ago. Arsenal, Chelsea, Liverpool, Newcastle and Aston Villa have all been credited with a strong interest in Pedro in recent weeks and are likely to be keeping close tabs on developments. Both Chelsea and Arsenal are scouring the market for attacking reinforcements (Picture: Getty) Pedro is reportedly available for a fee of £70m this summer (Picture: Getty) Pedro still has three years remaining on his current contract at Brighton. The Brazil international made headlines for the wrong reasons last month after he was involved in a heated training-ground clash with Brighton team-mate Jan Paul van Hecke. While Van Hecke kept his place in the side, Fabian Hurzeler decided to drop Pedro for Brighton's final two matches of the Premier League campaign against Liverpool and Tottenham. 'With Joao, we had a small issue in training, a type which isn't uncommon from time to time at all football clubs,' the Brighton head coach explained. Pedro was left out of Brighton's last two games of the season (Picture: Getty) 'We dealt with it internally and the matter is closed. 'Joao is an incredible football player, he is a match-winner for us and he is a great player and that's why we invested in him. 'But there are principles, there are values that are non-negotiable that count for everyone. I don't make any compromises.' Hurzeler said he hoped Pedro would 'grow' after the training-ground bust-up (Picture: Getty) Hurzeler added: 'Joao is still a young player, there is still a lot of potential where he will grow. 'I am sure that he will learn from this and come back stronger next season. 'I am really looking forward to seeing him renewed and reinvigorated at his highest peak into our team. That is all I would say to this. 'The only thing is how we dealt with it as a football club, how we dealt with it as a team.' Back in March, ex-Brighton manager Gus Poyet suggested Pedro could be the missing piece of the puzzle for Arsenal. More Trending 'Joao Pedro can play for any Premier League team, including Arsenal,' Poyet told 'I met Brighton's coach, Fabian Hurzeler, in Germany, and we spoke about football for hours like two little kids. He really impressed me, and I'm not surprised Joao is thriving under him. 'He's taken on responsibility, understands his role – whether as a No. 9 or playing just behind the striker – and he's embraced the demands of the Premier League. 'Arsenal are missing something up front, and he's a very good player.' For more stories like this, check our sport page. Follow Metro Sport for the latest news on Facebook, Twitter and Instagram. Arrow MORE: Chelsea and Tottenham miss out as Liverpool agree deal to sell Caoimhin Kelleher Arrow MORE: Rio Ferdinand says Matheus Cunha signing raises questions over future of Man Utd trio
Scottish Sun
4 days ago
- Business
- Scottish Sun
Joao Pedro slapped with £70m price tag as Arsenal consider entering transfer race for Brighton star
The Brighton star was dropped for his side's last two matches following a training ground bust-up JOAO ABOUT THAT Joao Pedro slapped with £70m price tag as Arsenal consider entering transfer race for Brighton star Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) BRIGHTON have slapped a whopping £70million price tag on striker Joao Pedro. Interest in the Brazilian, 23, has heightened as it appears the Seagulls are willing to do business. Sign up for Scottish Sun newsletter Sign up 3 Joao Pedro is attracting plenty of transfer interest Credit: Reuters But they will only be listening to offers around that figure, a huge mark-up on a player who joined in a £35m deal from Watford in July 2023. Newcastle, Liverpool Arsenal and Aston Villa are thought to be keen. Pedro hit ten goals in 27 Prem games last term. But he was left out of the last two games of the season by boss Fabian Hurzeler after a training-ground bust-up with team-mate Jan Paul van Hecke. Ahead of Brighton's final day victory at Tottenham, boss Hurzeler offered an update on Pedro's situation. The 32-year-old said: "With Joao, we had a small issue in training, a type which isn't uncommon from time to time at all football clubs. 'We dealt with it internally and the matter is closed. 'Joao is an incredible football player, he is a match-winner for us and he is a great player and that's why we invested in him. BEST ONLINE CASINOS - TOP SITES IN THE UK 3 'But there are principles, there are values that are non-negotiable that count for everyone. I don't make any compromises. 'I am sure that Joao is still a young player, there is still a lot of potential where he will grow. What does Brighton player Joao Pedro's controversial 'throat-cutting' goal celebration mean? 'I am sure that he will learn from this and come back stronger next season. 'I am really looking forward to seeing him renewed and reinvigorated at his highest peak into our team. That is all I would say to this. "The only thing is how we dealt with it as a football club, how we dealt with it as a team." Meanwhile, the Albion boss is set to offer a new one-year deal to veteran midfielder James Milner. The 39-year-old revealed this week that he had feared he would not walk again after surgery. He is 16 league games from breaking Gareth Barry's Prem appearance record of 653 matches.
The Irish Sun
4 days ago
- Sport
- The Irish Sun
Joao Pedro slapped with £70m price tag as Arsenal consider entering transfer race for Brighton star
BRIGHTON have slapped a whopping £70million price tag on striker Joao Pedro. Interest in the Brazilian, 23, has heightened as it appears the Seagulls are willing to do business. Advertisement 3 Joao Pedro is attracting plenty of transfer interest Credit: Reuters But they will only be listening to offers around that figure, a huge mark-up on a player who joined in a £35m deal from Newcastle, Liverpool Pedro hit ten goals in 27 Prem games last term. But he was left out of the last two games of the season by boss Advertisement READ MORE FOOTBALL NEWS Ahead of Brighton's final day victory at The 32-year-old said: "With Joao, we had a small issue in training, a type which isn't uncommon from time to time at all football clubs. 'We dealt with it internally and the matter is closed. 'Joao is an incredible football player, he is a match-winner for us and he is a great player and that's why we invested in him. Advertisement Most read in Football BEST ONLINE CASINOS - TOP SITES IN THE UK 3 'But there are principles, there are values that are non-negotiable that count for everyone. I don't make any compromises. 'I am sure that Joao is still a young player, there is still a lot of potential where he will grow. Advertisement What does Brighton player Joao Pedro's controversial 'throat-cutting' goal celebration mean? 'I am sure that he will learn from this and come back stronger next season. 'I am really looking forward to seeing him renewed and reinvigorated at his highest peak into our team. That is all I would say to this. "The only thing is how we dealt with it as a football club, how we dealt with it as a team." Meanwhile, the Albion boss is set to offer a new one-year deal to veteran midfielder James Milner. Advertisement The 39-year-old revealed this week that he had feared he would not walk again after surgery. He is 16 league games from breaking Gareth Barry's Prem appearance record of 653 matches. 3 James Milner has been offered a contract extension Credit: Getty
