Latest news with #PaloAltoNetworks
Yahoo
2 days ago
- Business
- Yahoo
Palo Alto Networks, Inc. (PANW): A Bear Case Theory
We came across a bearish thesis on Palo Alto Networks, Inc. (PANW) on Disruptive Analytics' Substack. In this article, we will summarize the bears' thesis on PANW. Palo Alto Networks, Inc. (PANW)'s share was trading at $186.75 as of 23rd May. PANW's trailing and forward P/E were 107.33 and 50.76 respectively according to Yahoo Finance. Palo Alto Networks (PANW) reported fiscal Q3 2025 results that modestly beat expectations, with revenue rising 15% YoY and strong contributions from next-generation security products. However, the market reacted negatively, as investors were underwhelmed by the company's forward guidance. PANW projected just 14–15% revenue growth for the next quarter and announced a 19% increase in remaining performance obligations (RPO), both seen as signs of slowing momentum. These figures sparked concerns about whether the company can maintain the high growth rates that have justified its valuation. The broader cybersecurity sector remains a long-term growth story, but PANW's recent slowdown is evident. Two years ago, the company was growing revenue at 25% YoY, while current growth has slipped to the mid-teens. Although investor expectations have adjusted somewhat, PANW still trades less than 10% below its all-time high, indicating that optimism remains elevated. The valuation premium appears unjustified given the current growth trajectory. At over $200 per share, the stock implies sustained revenue growth near 20% YoY, which PANW is not delivering. This disconnects between valuation and performance highlights the risks of relying solely on sector strength. While PANW operates in a promising industry, its financials no longer support such a high multiple. The numbers suggest a fair value closer to $155, where expectations would better align with realistic growth. Without a reacceleration in fundamentals, PANW looks overvalued at current levels despite its strong positioning within cybersecurity, and investors may need to reset assumptions accordingly. Previously, we have covered Palo Alto Networks, Inc. (PANW) in March 2025 wherein we summarized a bearish thesis by the same author. In the article, he cited concerns over its high valuation despite solid fundamentals and 15% annual growth. While PANW benefited from AI-driven security innovations and a shift to a unified platform model, a DCF analysis estimated its fair value at $155, below its then-current price of $182.32. The article acknowledged PANW's strengths but suggested other AI stocks offered better return potential at more attractive valuations. Since our last coverage, the stock has been mostly flat as of 26th May. Palo Alto Networks, Inc. (PANW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held PANW at the end of the fourth quarter which was 64 in the previous quarter. While we acknowledge the risk and potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
3 top ETFs from the London Stock Exchange to consider in June
Exchange-traded funds (ETFs) listed on the London Stock Exchange are a fantastic way to invest in themes inside an ISA. They also give instant exposure to a wide selection of companies, thereby helping to spread risk through diversification. Here are three ETFs spanning cybersecurity, artificial intelligence (AI) and defence I think have tons of potential and are worth further research. First up is L&G Cyber Security UCITS ETF (LSE: ISPY). This fund holds 41 stocks across the increasingly relevant cybersecurity industry. In recent weeks, Marks and Spencer, Co-op and Harrods have all been hit by cyber attacks. On 27 May, Adidas was the latest firm to have customers' personal information stolen. This highlights how cybersecurity spending is now a necessity rather than a luxury for organisations of all sizes. The fund holds many top stocks in the space, including CrowdStrike, Cloudflare, and Palo Alto Networks. So far in 2025, CrowdStrike and Cloudflare are up 37% and 50% respectively. The ETF's share price is up 56% over the past two years. However, one consequence is that valuations are quite high across much of the portfolio. A risk here then is that the stock market pulls back, reducing the ETF's value in the near term. Over the long term though, I think it's set up for further gains. AI's creating an escalating arms race between cyber attackers (groups and nation states) and the defending companies in this ETF. Sticking with AI, I think the iShares AI Innovation Active UCITS ETF (LSE: IART) is well worth considering. According to McKinsey Global Institute, AI software and services alone are projected to generate $15.5trn-$22.9trn in annual economic value by 2040! As the name suggests, this ETF's invested in firms doing a lot of AI innovation today. Top holdings include chip king Nvidia, Microsoft, which has a large stake in ChatGPT maker OpenAI, and Meta, the social media giant that's using AI to improve targeted ads on Facebook and Instagram. Now, one thing worth pointing out is that this actively-managed ETF was only launched in January. So there's no track record of outperformance to go on, which adds a bit of risk. However, I like that among the 39 holdings there are some smaller innovative names in there. These have the potential to eventually become tech giants in their own right. Examples include cloud-based data firm Snowflake, gaming platform Roblox, and Cloudflare (again). The third fund is the HANetf Future of Defence ETF (LSE: NATO). Since launching in mid-2023, the share price has more than doubled. This ETF has a dual focus. It provides exposure to companies benefitting from both NATO military and cyber defence spending. Top holdings include Germany's Rheinmetall, the UK's BAE Systems, and AI software giant Palantir. While these stocks have been on fire recently, a cut to the US defence budget could hurt their upwards trajectory. Meanwhile, a global recession might lead to lower growth and earnings for some firms in the portfolio. On the other hand, European nations are now committed to spending hundreds of billions on building their long-neglected defence capabilities. This is a powerful multi-decade trend that's likely to push the ETF higher, over time. The post 3 top ETFs from the London Stock Exchange to consider in June appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Ben McPoland has positions in BAE Systems, CrowdStrike, Legal & General Group Plc, Legal & General Ucits ETF Plc - L&g Cyber Security Ucits ETF, and Nvidia. The Motley Fool UK has recommended BAE Systems, Cloudflare, CrowdStrike, Meta Platforms, Microsoft, Nvidia, Roblox, and Snowflake. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
3 American Growth Giants to Invest in for the Long Haul
These three businesses are based in the U.S. and have experienced significant growth. What's more, they all still possess strong growth prospects in the years ahead. All generate strong profit margins, which can help them weather a challenging economy. 10 stocks we like better than Nvidia › Many of the best growth stocks in the world are based out of the U.S. This is the land of both opportunity and innovation. Warren Buffett has always been bullish on betting on the U.S. because he's a big believer in American business. If you want to follow suit and invest in some of the country's best growth stocks, there are three excellent names that I don't think you can go wrong with in the long term: Nvidia (NASDAQ: NVDA), Eli Lilly (NYSE: LLY), and Palo Alto Networks (NASDAQ: PANW). These three stocks are growth beasts, and they still have plenty more room to run over the long haul. Chipmaking giant Nvidia, one of the most valuable companies in the world, is based out of Santa Clara, California. Its history goes back more than 30 years to 1993. One of the remarkable features of this business is that it has had only one CEO, Jensen Huang, who co-founded the company. That's a good sign of continuity and underscores just how stable the business has been over the years. In its most recent fiscal year, which ended on Jan. 26, the company reported $130 billion in revenue, which was more than double the $61 billion it posted a year earlier, as demand for its artificial intelligence (AI) chips remains robust. But what impresses me most is just how incredible its profit margins are: typically well north of 50%. Nvidia is based in the U.S. but it isn't immune to the effects of tariffs or trade wars, especially with China being a key market for its operations. But with such high profit margins, it's in much better shape than other companies to be able to absorb higher costs and headwinds related to economic uncertainty. That's why this can be a no-brainer growth stock to buy right now. Indianapolis-based Eli Lilly is another great American growth stock to buy and hold. Founded in 1876, its history goes back nearly 150 years. And for decades, the business has been developing vital medicines for people to help improve their lives. One of the more exciting ones of late has been related to weight loss and obesity. Its GLP-1 drug Tirzepatide resulted in two highly successful products for Eli Lilly: Zepbound for weight loss and Mounjaro for diabetes. Together, those drugs generated more than $6 billion in sales through the first three months of 2025, representing nearly half of the top line, which rose by 45%. What's exciting here is that there is still so much potential for these drugs to generate more growth since they are still in their early stages. Plus, there are studies suggesting that GLP-1 drugs could even help with substance abuse by curbing addictions, which means there may be even more indications that tirzepatide is approved for in the future. And yet, Eli Lilly's business goes beyond just GLP-1, which is why this can be a fantastic growth stock to buy and hold. Tariffs could increase its costs, and a global trade war would affect its bottom line. But it, too, has some solid profit margins at around 22%. Rounding out this list of impressive American growth stocks is Palo Alto Networks, a cybersecurity company founded 20 years ago. Like Nvidia, its headquarters is also in Santa Clara. And as all things related to AI grow, businesses and consumers alike will need to ramp up their cybersecurity. Since the need for cybersecurity is ongoing, the company benefits from a large chunk of its top line being from recurring revenue. Its subscription and support segment generated $1.8 billion in sales for the quarter ended April 30, which accounted for 80% of its top line (product revenue made up the rest). And while overall revenue rose by 15%, the annualized recurring revenue for the company's next-generation security rose by 34%. Palo Alto's profit margin of 15% is light when compared to the other stocks on this list, but that's still a solid percentage of revenue flowing through to its bottom line. And it's a big improvement from just a few years ago when the business was still in the red. Results for the company's fiscal 2025 third quarter (ended April 30) included revenue of $2.3 billion, up from $2 billion a year ago. GAAP net income was unchanged at $300 million for the quarter. Palo Alto has come a long way in recent years, and while it may look like an expensive stock, trading at more than 100 times its trailing earnings, that valuation should improve as it continues to scale up and its margins get even better. While Palo Alto may experience a slowdown in business if a trade war affects spending, its top line relies heavily on software and support services, making it less vulnerable to tariffs than other stocks. For long-term investors, this can be another solid stock to own given the huge opportunities in cybersecurity in the years ahead. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. 3 American Growth Giants to Invest in for the Long Haul was originally published by The Motley Fool
Globe and Mail
3 days ago
- Business
- Globe and Mail
3 American Growth Giants to Invest in for the Long Haul
Many of the best growth stocks in the world are based out of the U.S. This is the land of both opportunity and innovation. Warren Buffett has always been bullish on betting on the U.S. because he's a big believer in American business. If you want to follow suit and invest in some of the country's best growth stocks, there are three excellent names that I don't think you can go wrong with in the long term: Nvidia (NASDAQ: NVDA), Eli Lilly (NYSE: LLY), and Palo Alto Networks (NASDAQ: PANW). These three stocks are growth beasts, and they still have plenty more room to run over the long haul. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Nvidia Chipmaking giant Nvidia, one of the most valuable companies in the world, is based out of Santa Clara, California. Its history goes back more than 30 years to 1993. One of the remarkable features of this business is that it has had only one CEO, Jensen Huang, who co-founded the company. That's a good sign of continuity and underscores just how stable the business has been over the years. In its most recent fiscal year, which ended on Jan. 26, the company reported $130 billion in revenue, which was more than double the $61 billion it posted a year earlier, as demand for its artificial intelligence (AI) chips remains robust. But what impresses me most is just how incredible its profit margins are: typically well north of 50%. Nvidia is based in the U.S. but it isn't immune to the effects of tariffs or trade wars, especially with China being a key market for its operations. But with such high profit margins, it's in much better shape than other companies to be able to absorb higher costs and headwinds related to economic uncertainty. That's why this can be a no-brainer growth stock to buy right now. Eli Lilly Indianapolis-based Eli Lilly is another great American growth stock to buy and hold. Founded in 1876, its history goes back nearly 150 years. And for decades, the business has been developing vital medicines for people to help improve their lives. One of the more exciting ones of late has been related to weight loss and obesity. Its GLP-1 drug Tirzepatide resulted in two highly successful products for Eli Lilly: Zepbound for weight loss and Mounjaro for diabetes. Together, those drugs generated more than $6 billion in sales through the first three months of 2025, representing nearly half of the top line, which rose by 45%. What's exciting here is that there is still so much potential for these drugs to generate more growth since they are still in their early stages. Plus, there are studies suggesting that GLP-1 drugs could even help with substance abuse by curbing addictions, which means there may be even more indications that tirzepatide is approved for in the future. And yet, Eli Lilly's business goes beyond just GLP-1, which is why this can be a fantastic growth stock to buy and hold. Tariffs could increase its costs, and a global trade war would affect its bottom line. But it, too, has some solid profit margins at around 22%. Palo Alto Networks Rounding out this list of impressive American growth stocks is Palo Alto Networks, a cybersecurity company founded 20 years ago. Like Nvidia, its headquarters is also in Santa Clara. And as all things related to AI grow, businesses and consumers alike will need to ramp up their cybersecurity. Since the need for cybersecurity is ongoing, the company benefits from a large chunk of its top line being from recurring revenue. Its subscription and support segment generated $1.8 billion in sales for the quarter ended April 30, which accounted for 80% of its top line (product revenue made up the rest). And while overall revenue rose by 15%, the annualized recurring revenue for the company's next-generation security rose by 34%. Palo Alto's profit margin of 15% is light when compared to the other stocks on this list, but that's still a solid percentage of revenue flowing through to its bottom line. And it's a big improvement from just a few years ago when the business was still in the red. Results for the company's fiscal 2025 third quarter (ended April 30) included revenue of $2.3 billion, up from $2 billion a year ago. GAAP net income was unchanged at $300 million for the quarter. Palo Alto has come a long way in recent years, and while it may look like an expensive stock, trading at more than 100 times its trailing earnings, that valuation should improve as it continues to scale up and its margins get even better. While Palo Alto may experience a slowdown in business if a trade war affects spending, its top line relies heavily on software and support services, making it less vulnerable to tariffs than other stocks. For long-term investors, this can be another solid stock to own given the huge opportunities in cybersecurity in the years ahead. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor 's total average return is978% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
3 days ago
- Business
- Yahoo
Palo Alto Networks, Inc. (PANW): A Bear Case Theory
We came across a bearish thesis on Palo Alto Networks, Inc. (PANW) on Disruptive Analytics' Substack. In this article, we will summarize the bears' thesis on PANW. Palo Alto Networks, Inc. (PANW)'s share was trading at $186.75 as of 23rd May. PANW's trailing and forward P/E were 107.33 and 50.76 respectively according to Yahoo Finance. Palo Alto Networks (PANW) reported fiscal Q3 2025 results that modestly beat expectations, with revenue rising 15% YoY and strong contributions from next-generation security products. However, the market reacted negatively, as investors were underwhelmed by the company's forward guidance. PANW projected just 14–15% revenue growth for the next quarter and announced a 19% increase in remaining performance obligations (RPO), both seen as signs of slowing momentum. These figures sparked concerns about whether the company can maintain the high growth rates that have justified its valuation. The broader cybersecurity sector remains a long-term growth story, but PANW's recent slowdown is evident. Two years ago, the company was growing revenue at 25% YoY, while current growth has slipped to the mid-teens. Although investor expectations have adjusted somewhat, PANW still trades less than 10% below its all-time high, indicating that optimism remains elevated. The valuation premium appears unjustified given the current growth trajectory. At over $200 per share, the stock implies sustained revenue growth near 20% YoY, which PANW is not delivering. This disconnects between valuation and performance highlights the risks of relying solely on sector strength. While PANW operates in a promising industry, its financials no longer support such a high multiple. The numbers suggest a fair value closer to $155, where expectations would better align with realistic growth. Without a reacceleration in fundamentals, PANW looks overvalued at current levels despite its strong positioning within cybersecurity, and investors may need to reset assumptions accordingly. Previously, we have covered Palo Alto Networks, Inc. (PANW) in March 2025 wherein we summarized a bearish thesis by the same author. In the article, he cited concerns over its high valuation despite solid fundamentals and 15% annual growth. While PANW benefited from AI-driven security innovations and a shift to a unified platform model, a DCF analysis estimated its fair value at $155, below its then-current price of $182.32. The article acknowledged PANW's strengths but suggested other AI stocks offered better return potential at more attractive valuations. Since our last coverage, the stock has been mostly flat as of 26th May. Palo Alto Networks, Inc. (PANW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held PANW at the end of the fourth quarter which was 64 in the previous quarter. While we acknowledge the risk and potential of PANW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
