As futurist Gerd Leonhard wrote in an article for Palo Alto Networks (PANW), “It is hard to overstate the dramatic impact that AI technology will have on the world in the coming years, including the world of cybersecurity.” And top investors bet PANW stock stands to benefit from artificial intelligence.
The company’s latest earnings report helped propel PANW stock into a buy zone.
Additionally, in Security Roundtable, an online magazine on cybersecurity trends put out by Palo Alto Networks, Leonhard penned an article titled “It’s Time to Get Real About Artificial Intelligence.” The magazine also recently released “What Kind of Artificial Intelligence Do You Need for Security?” by Greg Day, vice president and regional chief security officer for Europe, Middle East and Africa at Palo Alto Networks.
Day points out that artificial intelligence is a catchall term for a range of technologies. In terms of AI and cybersecurity, he states that three common uses come into play in this sphere: big data analytics, supervised machine learning and unsupervised machine learning.
Meanwhile, in an interview with CNBC’s Jim Cramer, Palo Alto Networks CEO Nikesh Arora called generative AI a boon for customer satisfaction and company efficiency.
Clearly, AI technology is top of mind for the Silicon Valley-based powerhouse. As AI offers entirely new levels of cybersecurity to streamline an enterprise’s operations, Palo Alto Networks continues to post impressive growth and secure undeniable institutional demand for PANW stock.
As a global cybersecurity leader, Palo Alto Networks provides next-gen cybersecurity to thousands of customers around the world, across all sectors.
Further, on Tuesday the company topped fiscal Q3 earnings and sales expectations, lifting PANW stock sharply higher.
Over the last five quarters, Palo Alto Networks has now generated earnings growth ranging from 30% to 83%. Over the last eight quarters, sales have been steady and stellar, with revenue gains ranging from 24% to 32%. On Tuesday, the company reported an 83% earnings increase to $1.10 per share. Sales grew to $1.73 billion, a 24% year-over-year gain.
With strong growth in cloud-based services and opportunities around artificial intelligence buzzing, Wall Street forecasts EPS growth of 44% for the cybersecurity company this year and 33% in 2024.
Likewise, Palo Alto Networks landed on this month’s list of new buys by the best mutual funds, with top-performing investors plowing roughly $183 million into PANW stock.
With its relative strength line soaring to a 52-week high, Palo Alto gapped up Wednesday to clear a 203.54 buy point. PANW stock rose nearly 8% in volume to a whopping 393% above average. That follows a heavy volume gap-up on its previous earnings report in February.
The stock was up again Thursday, rising in heavy volume amid a Big Tech rally.
See if Palo Alto Networks can ride the AI and cybersecurity wave to secure and build on that move as the market indexes try to fight off this week’s selling pressure.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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