We’re initiating a position in Palo Alto Networks (PANW), buying 125 shares at roughly $175 each. Following Wednesday’s trade, Jim Cramer’s Charitable Trust will own 125 shares of PANW, starting its weighting in the portfolio at about 0.73%. We’re calling up this leader in cybersecurity from the bullpen. We originally added PANW to our “stocks in waiting list,” which we call our Bullpen, last August around $167 per share. Since then, shares of Palo Alto Networks have gained roughly 4% compared to the S & P 500 ‘s decline of about 1%. Much like the broader market, PANW went through a nasty decline back in December and has since rallied nicely so far in 2023. But even after this year’s gains, shares are still down from the $180s in late August and the low $200s it reached last April. We think the stock can return to those prior highs in time. With earnings on the horizon, we are intentionally starting our PANW position on the smaller side. The company is scheduled to report earnings this coming Tuesday after the closing bell on Wall Street. This buy isn’t a call on the upcoming quarter — but if the stock were to fall for any reason that did not change our positive long-term view, we would greet weakness as an opportunity to bulk up our stake. PANW 1Y mountain Palo Alto Networks (PANW) 1-year performance We’re starting a position in Palo Alto Networks because of its leadership in cybersecurity. Earlier this week, Goldman Sachs published a research initiation note on cybersecurity companies. The analysts, who rated Palo Alto with a buy, said they expect “secular tailwinds in security to drive budget growth ahead of broader information technology (IT) spending and broader software over the next decade.” Goldman believes security will continue to take share of total IT and software budgets for three reasons: Security consistently screens as the first priority for investment in Goldman’s bi-annual survey of chief investment officers. Companies need to continue to…
Read the full article here
