PANW stock verdict - Avoid
PANW
Palo Alto Networks, Inc.
AVOIDTechnology
$323.79
Fundamentals below bar
$323.79
Heavy$46.71Buy$62.28Fair$77.85Exit$93.42
FUNDAMENTAL49
TECHNICAL67
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Uptrend · EMA20 330.44 · EMA50 296.83 · EMA200 228.17 · RSI 50.4 · MACD below signal
PROS
- Revenue grew 18.9%/yr on average over the last 3 years
- Conservative balance sheet — debt-to-equity of 0.07
- Converts 36% of revenue into free cash flow
- High gross margin of 73% (3-yr avg)
- Price is in an uptrend — above key moving averages with positive momentum
CONS
- Trades above the model's exit level ($93.42) — overvalued on this framework
- Expensive on trailing earnings (P/E 266.3×)
- Rich for its growth rate (PEG 2.5)
- Company has a low return on equity of 4.5% (TTM)
- TTM EPS fell 30.4% year-over-year
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 328% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-07-27 · price live, fundamentals from latest filings
FAQ
Why is PANW rated Avoid?
PANW (Palo Alto Networks, Inc.) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Fundamentals below bar. Revenue grew 18.9%/yr on average over the last 3 years and Conservative balance sheet — debt-to-equity of 0.07
Is PANW overvalued right now?
PANW is trading at $323.79 versus an estimated fair value of $77.85. That puts the stock in avoid territory on this framework. Trades above the model's exit level ($93.42) — overvalued on this framework and Expensive on trailing earnings (P/E 266.3×)
What should I watch before acting on PANW?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Trades above the model's exit level ($93.42) — overvalued on this framework and Expensive on trailing earnings (P/E 266.3×)