Cybersecurity Firm Deploys AI To Hack Into Buy Zone

Just as cybersecurity leader Palo Alto Networks (PANW) tracks threats, PANW stock is catching scrutiny on IBD’s stock screens. While bounding toward a breakout and a new buy zone, the stock was highlighted on the IBD Big Cap 20 on Oct. 2 and as the IBD Stock Of The Day on Oct. 3.

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Instutitonal demand in the company factors heavily in garnering such attention, as does Wall Street’s focus on Palo Alto’s integral role in cloud computing and artificial intelligence.

Palo Alto Networks did not join cybersecurity peers CrowdStrike (CRWD), Zscaler (ZS) and Okta (OKTA) on this month’s list of new buys by the best mutual funds. But 49 funds with an A+ or A rating from IBD now own shares in PANW stock. Plus, the stock sports a 1.3 up/down volume ratio and a solid B Accumulation/Distribution Rating.

PANW has also secured the highest-possible 99 Composite Rating. The fact that Palo Alto Networks shares that honor with CrowdStrike and Zscaler only brightens the spotlight on the Computer Software-Security group, which ranks No. 14 out of the 197 industries IBD tracks. With 98 and 97 Composite Ratings, respectively, Qualys (QLYS) and Okta rank among the top-rated cybersecurity leaders.

PANW Stock Joins Breakout Brigade With CrowdStrike

CrowdStrike and Zscaler, which was featured on Monday, continued to build on their recent breakouts. Now PANW stock looks to join the party as it flirts with a 288.58 buy point in a second-stage consolidation.

Palo Alto Networks rose just under 1% Wednesday in below-average volume, closing slightly above the entry at 259.21. The stock closed higher for a sixth straight session as the Nasdaq secured support at its 50-day moving averageas a new market uptrend takes hold.

Showing unmistakable market leadership, the relative strength line for PANW stock has earned a coveted blue dot on MarketSmith as it hits a new 52-week high. The rising RS lines for ZS, OKTA and CRWD stock further show the power of cybersecurity stocks.

Palo Alto Networks Taps AI, Named A Google Cloud Partner Of The Year

Headquartered in Santa Clara, Calif., Palo Alto Networks is a global cybersecurity leader. It provides next-generation cybersecurity to thousands of customers around the world across all sectors.

In August, the company took home three 2023 Google Cloud Partner of the Year awards. Through its partnership with Google Cloud, Palo Alto helps customers securely pursue their digital agendas with comprehensive cloud-native security offerings to protect against increasingly sophisticated and widespread cyberthreats.

Last month, Palo Alto Networks also received recognition as one of the top Forester Wave: Zero Trust Platform Providers. Zero Trust refers to a security framework requiring all users — in or outside a network — to be authenticated, authorized and continuously validated to access data and applications.

In its ongoing efforts to keep the cloud secure, PANW stock joins CrowdStrike and other cybersecurity players in riding the artificial intelligence boom.

Through its Cortex Portfolio, Palo Alto Networks uses artificial intelligence to track and prevent cyberthreats through the eyes of an attacker. Shifting away from a siloed security operations center approach, the company uses the AI-driven Cortex to stitch together network, endpoint, cloud and identity data to detect threats.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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