Palo Alto Networks is Poised to Outperform in the Long Run

In my opinion, the best way to profit from a growing industry is by betting big on the industry leader. 2015 was a volatile year for many sectors, but cyber security sector performed well in 2015, as many large firms suffered from data breaches. Palo Alto Networks (PANW) has the leading position in the market and endures to govern the next-generation cybersecurity industry. Due to Palo Alto Networks’ robust position in the sector, I think the stock is a great long-term buy, especially after the recent pullback.

Palo Alto Networks’ first quarter result resemble with it bright prospects as the company shared earnings per share of $0.35, $0.03 more than the analyst estimate of $0.32, whereas, revenue for the quarter came in at $297.2 million compared to the analyst estimate of $284.19 million.

Despite a trivial slowdown in the cybersecurity sector, the company managed to grow at a swift rate.
With billing growth rates and record level revenue, Palo Alto Networks is truly gaining momentum in the continuously increasing competitive cybersecurity industry.

Palo Alto Networks accounts for largest and most appreciated next generation cyber security company. In spite of its comparatively large size, the company is still developing at a hasty rate than its rivals. As a matter of fact, the company observed its peak quarterly year-over-year growth numbers in first quarter since debuting on the public markets. Over the prior year, the company has performed its job very well of capitalizing on rising cybersecurity anxieties. While most of the company’s primary rivals have not synced well to the escalating competition in the industry, Palo Alto Networks looks totally unaffected by the rising competition.

Recently, clients are shifting from limited purpose solutions to broader prevention platforms, therefore Palo Alto Networks has a great opportunity as it has the best prevention platform in the cyber security industry. The company’s efficient products and innovative platform has permitted the company to figure one of the biggest client bases in the sector comprising 28,000 clients athwart a multitude of countries.

The company’s Wildfire holds a robust position in company’s product list and alone has appealed more than 8,000 clients, many of which belong to the largest corporations in the world. Due to a large client list, Palo Alto Networks can perform consistently despite the downturn in the market.


Palo Alto Networks’ growing lists of clients and billings show that the company is on the right track to become the leader in the cyber security market. Palo Alto Networks also has a growing client list, signifying the growing demand for its products. Hence, I think investors should buy Palo Alto Networks to benefit from the growth of the cyber security market.
Published on Feb 5, 2016
By Akshansh Gandhi

Copyrighted 2020. Content published with author's permission.

Posted in ...