Trading Cybersecurity Stock Palo Alto Networks 30% Surge

May 17, 2022 22:45

Over the past few years, cybercrime has exponentially increased. This has caused many companies to seek out cybersecurity services to protect their clients. 

While the competition in cybersecurity services is high, most analysts are still positive regarding the outlook for cybersecurity stocks.  

With the recent tech stock sell-off, some of these companies are trading at interesting price levels. Learn how to trade Palo Alto Networks stock here.  

Stock: Palo Alto Networks
Exchange: NASDAQ
Symbol for Invest.MT5 Account: PANW
Date of Idea: 17 May 2022
Time Line: 1 - 6 months
Entry Level: $510.00
Target Level: $656.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Why Trade Palo Alto Networks Stock?  

Palo Alto Networks was founded in 2005 and now services more than 70,000 businesses in more than 150 countries. The cybersecurity company was eighth in the Forbes Digital 100 2018 list and counts 85 companies from the Fortune 100 list as a user of their services.  

The company’s core offering is in network security, cloud security and advanced firewalls. They also have an advanced threat intelligence team that works with the FBI called Unit 42. However, it is the company’s product line which allows individual customers to automate their online security operations that is the standout.  

Over the past several years, Palo Alto’s revenues and earnings have been growing. The company has also provided full-year 2022 guidance stating that total billings will be up 25% year on year. While these are positive figures for the company, it has also led to some lofty valuations for the stock.  

Palo Alto Networks Stock Forecast - What do the Analysts Say? 

According to analysts polled by TipRanks for a Palo Alto Networks stock forecast in the last 3 months, there are currently 23 buy, 2 hold and 0 sell ratings on the stock. The highest price level for a Palo Alto Networks stock forecast is $823.00 with the lowest price target at $510.00.

The average price target for a Palo Alto Networks stock forecast is $656.88 which represents more than a 30% upside from current levels, at the time of writing.

Source: TipRanks, 17 May 2022 

An Example Trading Idea for the Palo Alto Networks Stock Price

An example trading idea for the Palo Alto Networks stock forecast could be as follows:  

  • Buy the stock on a break above $510.00 to allow for current volatility around earnings. 
  • Target just below the average analyst price target at $656.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Palo Alto Networks shares:  
    • If target is reached = $1,460.00 potential profit ($656.00 - $510.00 *10 shares).

It’s wise to remember that the share price is unlikely to go up in a straight line and it may even go much further down before it rises, especially considering the recent sell-off in global stock markets.  

Therefore, be sure to exercise good risk management which is one of the most important aspects of trading successfully. You should always know how much you could potentially lose on a trade and the risks involved.  

Another factor to consider is the commission as these can eat into your profits. With the Admirals Invest.MT5 account you can buy US stocks from $0.02 per share. This means buying 10 shares in Palo Alto Networks stock would result in a commission of $0.20 ($0.02 * 10 shares).  

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Palo Alto Networks Stock in 4 Steps  

With Admirals, you can buy shares in companies like Palo Alto Networks with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the Trader’s Room.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for Palo Alto Networks at the bottom of the Market Watch window and drag the symbol onto the chart.   
  4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.   

Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance. 

Click on the banner below to buy Palo Alto Networks stock today! ▼▼▼ 

Do You See the Palo Alto Networks Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Palo Alto Networks's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 


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Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.