Palo Alto Networks Navigates Bullish Trend, But May Be Ripe For Volatility Ahead Of Earnings

Palo Alto Networks Inc PANW will report its first-quarter earnings on Wednesday. Wall Street expects $1.48 in EPS and $2.12 billion in revenues as the company reports after market hours.

The stock is up 48.93% over the past year, 34.31% year-to-date.

The cybersecurity giant, which has seen a tremendous rally along with the broader sector, may be ripe for another round of volatility as it reports.

Let’s look at what the charts indicate for Palo Alto stock and how the stock currently maps against Wall Street estimates.

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Palo Alto Stock Chart Moderately Bullish Ahead Of Q1 Earnings 

Palo Alto stock is navigating a moderately bullish trend, bolstered by buying pressure that hints at potential upside momentum.

Chart created using Benzinga Pro

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Palo Alto stock currently presents a mix of technical signals across key moving averages. While the eight-day simple moving average (SMA) at $392.85 flashes a near-term bearish signal, longer-term indicators favor the bulls.

The stock is trading comfortably above its 20-day ($378.75), 50-day ($362.45), and 200-day ($325.94) SMAs, all signaling strength and bullish momentum.

Momentum indicators add to the optimism, with a MACD reading of 8.31 pointing to continued bullish momentum. The RSI at 59.42 suggests that Palo Alto stock is neither overbought nor oversold, leaving room for further upward movement.

Investors may watch for a break above the 8eight-day SMA to confirm short-term bullish sentiment within the broader uptrend.

Palo Alto Analysts See 8% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Palo Alto stock stands at a Buy currently with a price target of $399.25. The latest analyst ratings from Jefferies, Rosenblatt and Truist Securities imply an 8.12% upside for Palo Alto Networks, with an average price target of $421.67.

Despite concerns over weaker network security trends, analysts like Jefferies are upbeat. The firm raised its price target on Palo Alto Networks from $400 to $450, while maintaining a Buy rating.

Jefferies sees modest upside to Palo Alto’s first quarter results but cautions that moderation in survey data and network security could limit growth.

Despite potential short-term headwinds, the long-term outlook remains strong, with confidence in the company's consolidation strategy and robust free cash flow generation.

Price Action: Palo Alto stock is trading at $384.86 per share, down 0.3%, at last check Wednesday.

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