Palo Alto Networks (PANW) has technically formed a pattern similar to its 2019–2021 flat period. Back then, after two tops (points 1 and 2) and a sharp bear trap breakdown below the current range (point 3), PANW retested the upper side of the range once more (point 4), which was followed by a massive breakout. From point 3 to the top, PANW rallied 361.8% of the range width, delivering more than a 130% return in about a year and a half.
Currently, PANW appears to be forming a smaller version of that same pattern. Points 1, 2, and 3 seem to be in place, and we are now at point 4. Excluding fundamentals, if the same pattern completes, the technical target could be around $367, an over 80% potential return from current levels. However, it may be wise to wait for a confirmed breakout for validation.
On the fundamental side, PANW appears to be trading at a high valuation compared to both its historical averages and sector peers. The 2-year forward P/E average is 51.2x, while the current forward P/E sits at 55.5x not drastically higher, but still elevated. That said, Palo Alto is expected to post 14.29% year-over-year revenue growth with a strong operating margin in the upcoming earnings report.
Currently, PANW appears to be forming a smaller version of that same pattern. Points 1, 2, and 3 seem to be in place, and we are now at point 4. Excluding fundamentals, if the same pattern completes, the technical target could be around $367, an over 80% potential return from current levels. However, it may be wise to wait for a confirmed breakout for validation.
On the fundamental side, PANW appears to be trading at a high valuation compared to both its historical averages and sector peers. The 2-year forward P/E average is 51.2x, while the current forward P/E sits at 55.5x not drastically higher, but still elevated. That said, Palo Alto is expected to post 14.29% year-over-year revenue growth with a strong operating margin in the upcoming earnings report.
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.