Should I Buy Palo Alto Networks (PANW)? Finance YouTuber Analysis

Joseph Hogue identifies Palo Alto Networks as one of his top five cybersecurity stocks, recommending it as a direct investment after using the CIBR ETF as a research tool. He highlights its strong past performance, outperforming the thematic ETF, and its position as a leader in the essential cybersecurity theme.

“The five cyber security stocks I like best. Crowdstrike holdings ticker CRWD. Palo Alto Networks P&W, Fortnet, FTN, Octa, OKTA, and Zcaler ticker ZS have returned an average 151% over the last 5 years versus an 87% return on that thematic ETF.”

The YouTuber is bullish on Palo Alto Networks due to the anticipated AI-driven boom in cyberattacks, which will increase demand for cybersecurity solutions. He notes that Palo Alto has inside information on this threat and is well-positioned to benefit, balancing strong growth with good profitability.

“My five favorites continue to be Palo Alto, P&W, Crowdstrike CRWD Fortnet FT&T Zcaler ZS, and Octa. Okta.”

The YouTuber holds Palo Alto Networks as part of his cybersecurity portfolio, identifying it as one of the 'safest' options. He notes its partnership with Anthropic's Mythos model, which he sees as a positive indicator for its continued relevance in the cybersecurity space.

“Now Crowdstrike and Palo Alto are probably the safest of the group and are working with Anthropic in its Mythos model to stop those hackers.”

The YouTuber is buying shares of Palo Alto Networks, citing its position as a cybersecurity stock that has rebounded from AI fears. He previously highlighted cybersecurity stocks as a good investment.

“I also highlighted cyber security stocks in that video and why I'm still buying shares of Palo Alto Networks P&W”

The YouTuber is buying Palo Alto Networks, arguing that AI actually increases the need for cybersecurity, making the company's unified security platform more critical. Despite recent market fluctuations, the stock has rebound potential to its 52-week high and offers a 17% upside based on a conservative price-to-sales multiple, with strong long-term growth prospects.

“That's about a 17% upside from here to $213 a share and long-term room to grow on that 20% annual growth.”

The YouTuber is adding to positions in Palo Alto Networks, arguing that fears of AI replacing cybersecurity companies are overblown. He expects strong revenue growth to continue, and that upcoming earnings reports will confirm this, leading to a bounce in the stock.

“I own and am adding to positions in Zscaler, ticker ZS, Crowdstrike Holdings, CRWD, Palo Alto Networks, PNW, and Fortnite, ticker FTN. Now, the trigger here in these stocks is going to be the quarterly earnings reports like we're coming into right now.”

The YouTuber advises holding Palo Alto Networks, dismissing concerns that AI will reduce demand for cybersecurity. He contends that AI will create new security challenges, increasing the need for robust solutions, as evidenced by Anthropic's partnership with Palo Alto to mitigate AI-related threats. He views the recent market downturn in cybersecurity stocks as a buying opportunity, anticipating continued revenue growth.

“In fact, Crowdstrike and Palo Alto initially jumped on this news that Anthropic is partnering with both of these companies to fix those that potential threat.”

The YouTuber is actively buying Palo Alto Networks, along with other cybersecurity stocks, believing the market is now recognizing AI as an opportunity rather than a risk for these companies. He argues that the initial sell-off was a 'knee-jerk reaction' and that AI will boost demand for robust cybersecurity solutions, making these stocks attractive after their double-digit declines.

“I own all five stocks here. Crowdstrike, Zscaler, Palo Alto Networks, Fortnet, and Octa, and I'm actively buying more of some of these hardest hit over the next few months.”

The YouTuber recommends Palo Alto Networks, a leader in cybersecurity, believing that AI will increase demand for cybersecurity services. He highlights its strong portfolio across cybersecurity segments, its current attractive valuation, and its ability to convert sales into earnings more efficiently than many peers, offering a balance of growth and profitability.

“Fifth stock here on the list, one of my favorites, Palo Alto Networks, ticker PW. All you out there in the nation know I am a big believer in cyber security, AI, artificial intelligence increasing the attack surface that hackers are using to get into companies that is going to that is going to see a surge in demand for these cyber security stocks.”

The YouTuber includes Palo Alto Networks as a favored cybersecurity stock, part of a broader theme of increased spending on cybersecurity due to escalating global cyber threats. He suggests that all major cybersecurity names are good buys.

“also like Palo Alto Networks, Fortnet as well as Zscaler and Octa. So I own most of the big names in this. Okay. I think you don't necessarily have to go with any one particular name. I think all of these are good.”

The YouTuber recommends buying Palo Alto Networks on the dip, arguing that AI tools won't replace the comprehensive services provided by industry leaders like Palo Alto Networks. He advises accumulating shares monthly for long-term holding.

“These two stocks continue to be my favorites in the space along with Palo Alto Networks PW and Fortnite FTN. Now, these aren't must buy cheap territory. But instead of trying to time that rebound, I just put them a little bit more in each month, put them on a monthly buy list, and hold long-term.”

The YouTuber argues that Palo Alto Networks is a strong buy despite a recent 8% sell-off after earnings. He believes the market is misinterpreting the earnings report, which showed strong revenue growth and profitability. The CEO's comments on AI-driven security needs and the Cyber Ark acquisition are seen as significant growth catalysts, with analysts projecting substantial upside.

“Aloto is one of my top stocks in the cyber security theme. A best of both worlds there with that 19% revenue growth plus the second best in profitability.”

The YouTuber identifies Palo Alto Networks as a favorite cybersecurity stock, expecting 15% sales and earnings growth this year. He notes that this growth, combined with recent acquisitions and double-digit operating profitability, brings the stock into 'value territory' at just 10 times price-to-sales, representing a 36% discount to its average multiple.

“Against this, the cyber security group has sold off recently, even as IT security spending continues higher with Palo Alto Networks expected to post 15% sales and earnings growth this year.”

Palo Alto Networks is favored for its broad participation and leadership in high-growth cybersecurity segments like cloud security and SASE. Cybersecurity budgets are growing dependably, and pure-play companies like Palo Alto are best positioned to capitalize on this trend.

“I like Palo Alto for its broad participation as well as leadership in growth areas, but I'm also buying Crowdstrike for its endpoint and agentic segments as well as Zcaler for cloud and SASSE growth.”

Joseph recommends Palo Alto Networks, citing cybersecurity as a critical, non-discretionary IT spending area with high growth rates in cloud and SASE segments. He notes PANW's market leadership, financial strength to dominate various segments, recent acquisition in identity management, and a healthy 12% operating margin, making it a 'growth at a reasonable price' option in a strong sector. Brian agrees, emphasizing the infancy of the cybersecurity market and its continued growth potential.

“It is definitely the growth at a reasonable price for a great sector.”

The YouTuber is buying Palo Alto Networks due to its leadership in the cybersecurity theme, which is identified as a long-term growth area. The stock is part of the First Trust Cybersecurity ETF (CIBR) holdings, indicating its prominence in the sector.

“Within the group here, I'm buying Palo Alto Networks, ticker PW, Crowdstrike Holdings, CRWD, Octa Inc., ticker Okta, Fortnet, FTN, and Zcaler ZS on their leadership in this theme.”

The YouTuber considers Palo Alto Networks a 'must buy' based on its valuation and potential from recent acquisitions. He highlights the non-discretionary nature of cybersecurity spending, driven by the high costs of cyberattacks and the projected 12% annual growth in the sector.

“Palo Alto Networks P&W is a must buy on its valuation and the potential in recent acquisitions.”

The analyst is deeply invested in cybersecurity and considers Palo Alto Networks one of his favorites, noting it is one of the few profitable companies in the space. He highlights its strong position within the growing cybersecurity theme.

“But Crowdstrike and PaloAlto are two of my favorites.”

The YouTuber identifies Palo Alto Networks as part of his favorite long-term cybersecurity theme and states he would pick up more shares on any dips, especially if fears about competition and a weakening economy are confirmed after its earnings report. He emphasizes that cybersecurity is an 'unstoppable theme' and investors should be involved.

“But again, I would be right there picking up more shares. Folks, this is a long-term unstoppable theme and you want to be involved in these cyber security names.”

The analyst likes Palo Alto's valuation at 11 times forward price-to-sales, which is nearly half as expensive as CrowdStrike. However, he wants to see the company return to earnings growth and demonstrate its ability to convert sales into profits before adding to his position.

“As for Palo Alto, I like the stock on this 11 times price-to-sales ratio, nearly half as expensive as CrowdStrike, but I also want to see it get back to earnings growth and prove that it can convert those sales into profits.”

The YouTuber is optimistic about Palo Alto Networks ahead of its earnings, noting it hasn't seen the big run-up that Fortinet did. He highlights the potential for its announced CyberArk acquisition to boost revenue by 17% in addition to expected 13% growth, making it attractive given its current trading discount to other cybersecurity stocks and its own historical valuation.

“The stock is already trading at a discount to these other cyber security stocks and to its own history now at just under 14 times on that price to sales basis. That is 10% cheaper than the 15.5 times average valuation and would make it very cheap against next year's cyber arcfueled growth.”

The YouTuber views Palo Alto Networks as a buying opportunity, especially after its recent sell-off due to the CyberArk acquisition news. He notes its respectable double-digit revenue growth (14%) and profitability with an 11% operating margin. While it competes across many segments, its acquisition of CyberArk strengthens its position in the critical identity and access management segment.

“Palo Alto Networks which only 14% revenue growth which is respectable double-digit revenue growth but also profitability at 11% operating margin.”

Palo Alto Networks is mentioned as a strong pick in cybersecurity, which the YouTuber considers his favorite growth theme. It passed the 'Rule of 40' test, indicating solid fundamentals, and he owns the stock.

“You out there in the nation know Cyber Security is my favorite growth theme. And I own both Palo Alto and CrowdStrike.”

The YouTuber identifies Palo Alto Networks as his favorite all-around stock in cybersecurity due to its comprehensive platform approach across various security segments like cloud, endpoint, and SASE. He highlights its strong recurring revenue growth, particularly in next-gen security and the XSIAM platform, and notes its solid operating margin and relatively attractive valuation when adjusted for growth compared to peers. He believes its broad strategy ensures success regardless of future market shifts.

“That's because if there's one company that defines cyber security, just one stock, it is Palo Alto.”

The YouTuber recommends Palo Alto Networks as a strong all-around stock in the cybersecurity theme, citing its comprehensive platform approach, $3 billion in annual cash flow, and ability to compete across all segments. Despite slightly lower revenue growth compared to some peers, it's considered a profit machine and one of the least expensive in the group, with the cybersecurity theme expected to pay off for years.

“And here the best all-around stock in the theme is Palo Alto Network ticker P&W which is the only company to compete in every segment using its giant $3 billion in annual cash flow to go wherever companies need security.”

The analyst strongly recommends cybersecurity stocks for the long term due to escalating cyber threats. Palo Alto Networks is identified as a key player in this essential sector, which has demonstrated resilience in market downturns, making it a compelling investment despite not being 'cheap'.

“Within the theme, I own both of these along with Zcaler, ticker ZS, and Fortnite, FT&T. Showing you the bigger picture here with the sector spider sector tracker.”

The analyst recommends Palo Alto Networks as a key player in the cybersecurity trend, which is considered unstoppable. This aligns with the attractive earnings growth observed in the technology sector.

“and PaloAlto Networks, ticker P&W, the biggest company in the unstoppable cyber securities trend.”

The analyst recommends Palo Alto Networks for its overall growth, profitability, and size advantage within the expanding cybersecurity market. He notes its platformization approach, AI-powered firewalls, and strong detection scores, despite lower revenue growth compared to Crowdstrike.

“PaloAlto leads in its platformization approach, using its scope to consolidate security solutions into a unified product, an all-in-one player.”

The analyst holds Palo Alto Networks, noting its leadership in platformization and AI-powered security. While revenue growth is slower due to its large size, it boasts the second-highest operating margin and is relatively cheaper on an adjusted PE basis. The analyst suggests it's a stock to watch, with a price target of $241.

“My price target of $241 per share is based on $10.5 billion in expected 2026 Revenue times a 15 times price to sales ratio for a 26% upside.”

The YouTuber is buying Palo Alto Networks, highlighting its position as the largest pure-play cybersecurity company with the scale to provide all-in-one enterprise security. He considers its valuation at 50 times P/E to be relatively cheap within the group, making it an attractive addition.

“as the largest PurePlay cyber security company it has the scale to provide that that all-in-one Enterprise security solution and is trusted by companies and governments with over 655,000 customers”

The YouTuber is buying Palo Alto Networks, citing the 'ever increasing demand for cyber security protection' as the primary driver. He includes it in his favored cybersecurity theme.

“I'm buying zscaler poo Alto networks and crowd strike on that ever increasing demand for cyber security protection”

The YouTuber likes Palo Alto Networks within the cybersecurity theme for its balance of growth, profitability, and valuation. While not the fastest growing, its strong profitability and better price compared to peers make it an attractive option in a booming market, expected to produce strong double-digit returns.

“I like poo Alto here on its balance between growth profitability and valuation not the fastest growing but strong profitability and a better price than most of the others”

The YouTuber is buying Palo Alto Networks, viewing it as a good balance between growth and valuation within the cybersecurity sector. As one of the largest companies in the group, it has the scale to provide comprehensive enterprise security solutions and is trusted by a large customer base.

“Palo Alto struck me as a good balance between that growth and valuation it's not the fastest growing among its group but solidly upward and at a valuation that's well under more expensive Piers.”

The analyst identifies Palo Alto Networks as a leader in the cybersecurity sector, which he considers a favorite growth theme. Despite the stock's recent run-up and high valuation, he suggests buying any dips, especially after earnings reports, due to the company's strong market position and the sector's long-term growth prospects.

“Com as ações subindo 48% em relação ao ano passado e já sendo negociadas de forma bastante cara, eu estaria comprando qualquer queda, mas esteja preparado para isso.”

The YouTuber considers Palo Alto Networks a strong pick due to its dominant leadership in the cybersecurity market, holding a third of the market share. Despite slightly slower revenue growth and lower operating margins compared to some peers, he believes its market dominance in a high-growth sector will drive future success. He expects management to improve profitability and sees it as a balanced choice among cybersecurity stocks.

“Palo Alto networks the dominant leader in the cyber security themes T ticker pnw again folks cyber security is probably my favorite theme over the next 5 10 years it is really the Unstoppable Force as we go more online as AI opens up new threats uh online there is going to be a rush of money from Enterprises from consumers into cyber security stocks and I think these are the stocks you need to own.”

The analyst is buying Palo Alto Networks shares, citing cybersecurity as his favorite theme due to strong growth driven by IoT and AI. He believes the demand for cybersecurity is pervasive and will not change, making it a confident investment.

“cyber security is easily my favorite theme right now not only for its strong growth but also for the confidence in returns behind all the tech changes the internet of things and artificial intelligence is a booming and pervasive demand for cyber security that's not going to change and I'm buying shares of zscaler crowd strike poo Alto networks”

The YouTuber is buying Palo Alto Networks, viewing cybersecurity as a long-term growth trend. He is using the recent sector weakness, partly triggered by Palo Alto's own disappointing outlook, as an opportunity to add to his position in what he considers a top cybersecurity stock for the next decade.

“I'm taking the opportunity to pick up shares of my three favorites in this space zscaler Zs crowd strike crwd and paloalto networks panw as cyber security continues to be one of my favorite growth Trends over the next decade despite any warnings we hear hear here for management”

Despite a recent 29% plunge after beating revenue and earnings expectations but providing a conservative outlook, the analyst sees this as an opportunity to buy Palo Alto Networks at a discount. This allows investors to take advantage of the long-term theme in digital security.

“I think it's an opportunity to pick up shares at a discount here and take advantage of that long-term theme in digital security”

The analyst views Palo Alto Networks as a strong contender that is close to meeting the 'Rule of 40'. It requires only a small increase in profitability to qualify, indicating it's a promising investment if that improvement materializes.

“service now TI our no and P Alto networks toer pnw are strong contenders and just need to boost their profitability a few perc to get here”

The analyst suggests Palo Alto Networks offers a good balance between growth, profitability, and valuation within the cybersecurity sector. He believes cybersecurity companies will benefit from the increasing demand driven by the failure to address technical debt, leading to more security breaches.

“Palo Alto networks ticker PA andw May offer the best balance between that growth profitability and valuation”

Palo Alto Networks is recommended as a good compromise between growth and price, offering an all-in-one enterprise security solution with a large customer base. The company has demonstrated strong sales growth and a double-digit operating margin, trading at the second-lowest P/E ratio among the discussed stocks.

“Palo Alto also strikes me as a good compromise between that growth and price though I still prefer crowd strike for that uh PW has grown sales by over 100% over the last 3 years has a double digigit operating margin and trades for the second lowest PE ratio.”

The analyst sees Palo Alto Networks as an attractive entry point after its 14% August sell-off, noting its expected 25% sales growth and 69% earnings growth this year, with continued strong growth projected. He highlights its current valuation of 9.3 times expected revenue as cheap compared to its history and the industry, especially given the anticipated growth in the software security sector driven by AI.

“Shares are now trading for about 9.3 times this year is expected Revenue that's not cheap but it is a very cheap compared to the Stock's history most of these security software companies trade well over 10 times on a price to sales basis so this could be an attractive point to get in here and get these that entire software security industry should see some strong growth as that AI ramps up over the next several years and investors should take opportunities like this recent sell-off to accumulate shares”

The YouTuber identifies Palo Alto Networks as a key player in the 'security and observability' layer, arguing that the increasing criticality of AI systems makes them prime targets. He stresses that security is non-negotiable for enterprise AI adoption, positioning Palo Alto Networks as a vital solution.

“Bottleneck seven is security. Crowdstrike, Palto networks, and data dog sit at the intersection of AI infrastructure and protection. Every new workload that goes live is a new attack surface. Security is not optional at the enterprise level.”

The YouTuber believes Palo Alto Networks benefits from AI due to increased cybersecurity needs. Despite a recent correction, he finds its valuation of 34 times free cash flow for 15% annual growth to be high, suggesting it's not offering a discount and remains expensive.

“But in my opinion, I do think that a 34 price to free cash flow for roughly 15% annual growth is a pretty high multiple to pay. So I do not think that Polo Alto is necessarily offering a discount today and it is still on the expensive end, at least in my opinion.”

The YouTuber is interested in buying Palo Alto Networks (PANW) if its stock price drops to around $250 per share. He believes the company is high-quality with strong tailwinds in the cybersecurity industry and robust free cash flow generation, but currently overvalued based on its historical price-to-free cash flow ratio and decelerating revenue growth. He also notes a concern about high stock-based compensation leading to shareholder dilution.

“for Palo Alto to produce a 10% annual return rate the stock would have to be about $250 per share or about 22% below where it is currently trading so in my opinion this is around the fair value for Palo Alto stock here is right around that $250 per share price so if Palo Alto ever does get back to the share price then I will start to become much more interested in the stock”

The YouTuber recommends Palo Alto Networks, stating that it is favored by members of the House and Senate. He implies that tracking government officials' investments can provide insight into good buys.

“Palo Alto Networks the those that's in the house and the Senate love these guys if you're not tracking what your Senators what your what your people in government are buying please do so.”

The YouTuber recommends Palo Alto Networks as a top-tier cybersecurity stock, even better than CrowdStrike, emphasizing the increasing need for digital security with the emergence of AI. He expects it to perform well through year-end and into 2025.

“Like Cloud strike this is Best in Class they're even better than crowd strike and so again as it comes to your SA Safety and Security I want you guys to make sure you have something some type of representation in your portfolio Okay”

The YouTuber suggests Palo Alto Networks for a short-term trade, noting its recent rebound after a post-earnings drop. He speculates that Nancy Pelosi's recent purchase at the low point of $260 indicates a strong potential for the stock to return to its previous highs and potentially go even higher, similar to her past success with Nvidia.

“check this out guys they were down this was after earnings watch this they was 366 they fell after earnings they fell to 260 they fell over $100 but guys low key I think Nancy Pelosi just got back in this or she just bought this so that's probably why it's going up but she just got perfect time and she got it right here at 260 and watch this this was February 21st it went from 260 and now it's already then went high as 326 I saw it going crazy this morning when I was doing my due diligence for Google and paler some plays I was playing Intel and I saw this going crazy I said my God nasty Pelosi don't miss but anyway this them already went from look at this 360 down to 260 now it's back at 326 and it closed today at 3:15 so again it's going to make its way back up to the level it fell from and probably go even higher especially now that nasty Pelosi has did just what she did with Nvidia she's doing that with this so I'm just putting that on your radar in case again you guys want to take part on the runup okay”

The YouTuber suggests that the recent drop in Palo Alto Networks' stock price, caused by lower-than-expected revenue projections due to 'buyer fatigue' in cybersecurity spending, might present a good 'buy the dip' opportunity. He notes that the company is a leader in firewall protection and is relied upon by 85 out of the Fortune 100 companies.

“I think that there's a few different ways to look at this first being that maybe this is a good opportunity to buy the dip with poo Alto”

The analyst recommends avoiding Palo Alto Networks based on a cash flow analysis, despite its strong revenue and EBITDA growth. He argues the stock is overvalued, trading at roughly 100 times earnings and a 1% free cash flow yield, which is too high for a long-term, cash-flow focused investor. Additionally, the company's high debt-to-EBITDA ratio and significant stock-based compensation (15% of revenue) are concerns.

“from a cash flow basis it definitely doesn't meet the mark let's review the five key attributes and see what we have here number one Topline Revenue growth yes it's growing number two uh ebaada yes it's growing number three strong free cash as absolute number four to low debt no and number five well priced no uh those two things for me give it a bad uh I can't recommend it based on a pure cash flow analysis it's not a stock that is going to yield a tremendous amount of cash right now and I would pass on it”

Palo Alto Networks has experienced strong growth due to the increasing importance of cybersecurity and VPN services. The company has recently turned profitable after reporting losses. The YouTuber views it as a very valuable company and would look to buy aggressively if its expensive shares experience a significant pullback.

“if shares start to pull back in any significant way that's one I would that's when I would be looking to get much more aggressive in buying this stock”