Cybersecurity is front and center for businesses and individuals as Russia’s war on Ukraine drags on and hackers around the world engineer increasingly sophisticated attacks. Palo Alto Networks (PANW) is at the forefront of cybersecurity and among the highest ranked companies in the group. Palo Alto Networks’ stock relative strength rating climbed to 85 on Wednesday, making it a good prospect to add to a stock watchlist.
The updated 85 RS rating means shares of Santa Clara, Calif.-based Palo Alto Networks are among the top 15% by price. Over 100 years of market history reveals that the best performing stocks often have an RS rating above 80 at the start of their moves.
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Palo Alto Networks shares beat major benchmarks
Palo Alto Networks stock rose more than 3% on Wednesday afternoon, above 527, on track for its sixth consecutive close higher. Meanwhile, it has passed its 50-day average line and is on the verge of surpassing its 200-day mark. It builds a consolidation pattern with a buy point of 641. See if the stock can clear the breakout price in volume at least 40% higher than normal.
Earnings growth is accelerating
Earnings growth increased in the last quarter, from 12% in the previous quarter to 30%, or $1.79 per share. Revenue grew 29% year over year to $1.39 billion. The company has scheduled a conference call with analysts after the market closes on Aug. 22 to discuss its fiscal fourth quarter results.
Palo Alto Networks stock ranks 3rd among its peers in the Computer Software-Security industry group. Fortinet (FTNT) and Qualys (QLYS) are also among the highest rated stocks in the group.
When looking for the best stocks to buy and watch, keep an eye on relative price strength.
IBD’s unique rating measures market leadership with a score from 1 (worst) to 99 (best). The score shows how a stock’s price performance over the past 52 weeks compares to all other stocks in our database.
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