Palo Alto Networks Feels Selling Pressure As Investors Brace For Earnings Jolt

Palo Alto Networks Inc. PANW has become a fortress in the digital realm, offering robust solutions in network security, cloud security and security operations.

Its stock is up 15.64% year-to-date and an impressive 38.74% over the past 12 months. With over 85,000 customers worldwide, including more than three-fourths of the Global 2000, this California-based powerhouse is on the radar of investors ahead of its fourth-quarter earnings announcement.

While Palo Alto has maintained a moderately bullish trend, it’s not all clear skies.

Watch For Overbought Risks

Palo Alto Networks stock is feeling some selling pressure, hinting at potential bearish risks on the horizon. However, the technical indicators are flashing bullish signals across the board, making this a fascinating play.

Chart created using Benzinga Pro

The stock, at $334.11, is sitting comfortably above its eight-day simple moving average (SMA) of $333.07, a clear bullish signal. It's also well above its 20-day SMA of $322.86 and its 50-day SMA of $325.87, reinforcing the bullish sentiment.

Even when we zoom out to the 200-day SMA of $304.89, Palo Alto remains well-positioned, further signaling bullish sentiment for the long-term.

Read Also: Palo Alto Networks Remains ‘Top Cybersecurity Pick’ As Analysts Predict 14% Year-Over-Year Growth

Chart created using Benzinga Pro

The MACD indicator, with a positive reading of 3.10, suggests that the stock has momentum on its side, another bullish indicator. However, it's worth noting that the RSI at 56.58 is treading higher towards the overbought territory, suggesting a potential pullback could be on the cards.

Bollinger Bands are showing a range between $299.77 and $349.71, with Palo Alto trading closer to the upper band—a zone typically associated with overbought conditions but still offering a bullish signal.

Earnings On The Horizon: Will Palo Alto Networks Surpass Expectations?

Investors should keep a close eye on tonight's earnings report. With an estimated EPS of $1.41 and revenue projected at $2.16 billion, any surprises could either fuel the current rally or trigger a correction.

In the world of cybersecurity, nothing is ever certain, but Palo Alto Networks looks like it's ready to defend its gains.

Read Next:

• US Stocks Set To Start Week On Flat Note As Focus Shifts To Fed Speeches: Strategist Says Strong Gains Ahead If S&P 500 Extends Winning Streak To 8 Sessions

Image: Shutterstock