Earnings Play: Palo Alto Networks

Palo Alto Networks appears to be headed for 300.

New Highs 2

On Monday, after market, Palo Alto Networks (PANW) is expected to release fourth quarter EPS of $1.39 compared to $1.47 the prior year on revenue of approximately $923.8 million vs. $805.8 million last year. The company operates as a pure-play cybersecurity vendor that sells security appliances, subscriptions, and support, and its expected move based on front-month options is 7.4%. The last time the company reported earnings the stock rose 3.7%.

Looking at a daily chart, Palo Alto's stock price is holding above a bullish trendline that began to form in late-June. Price has been steadily making new highs since August 5th. The RSI is bullish and advocates for further advance. Price will likely head for the 300.00 level as it is a significant round number. If price can break above 300.00 it may reach for 316.00, the first Fibonacci extension target. If price falls below the rising trendline traders can look to 253.00 for a possible bounce. If price cannot hold above 253.00, it could fall further to 234.00. However, given that we are still in a bull market sentiment favors a continuation of the trend. 



Source: GAIN Capital, TradingView

More from Earnings

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.