New Trade for May 17th, 2022

One of the biggest threats to corporate America is ransomware. The growing possibility of losing access to essential or confidential digital property is a nightmarish scenario for executives as the financial consequences can be enormous.  

But it’s not just major companies that are at risk. We are all threatened with the loss of personal data security as hackers continue to develop new ways to exploit networks, software, and the array of evolving technology services. As the world advances to become more digitized, so too do its threats.

These attacks are among several tailwinds for investors in cybersecurity stocks, says Morningstar senior equity analyst Mark Cash.  The “heightened threat environment, networking changes due to the pandemic changing how security works, legislation ramping up fines for miscues, spending becoming proactive and commanding a larger portion of IT budget, and these headline-grabbing breaches all help the demand,” he says.

Cybersecurity is a young, quickly evolving industry.  Many companies are likely to get filtered out over time.  In this competitive industry where only the strong will survive, the company featured in today’s trade alert is taking bold steps to ensure its place at the head of the pack.     

Empire Research:

A company with 400 million ‘patents’

One company has quietly compiled more than 400 million official trade secrets.

Trade secrets are like patents in that they protect valuable and proprietary information…

But unlike patents, trade secrets take less time to register… and more importantly, they never expire.

Which is a huge advantage for this little-known company.

You see, this company is using these trade secrets to build the world’s largest “codebase,” which will bethe key to it becoming “America’s Next Big Monopoly.”

Not surprisingly, Wall Street is starting to take notice. And the smart money is already pouring in.

Tech investor Cathie Wood has invested over $80 million already, and Microsoft founder Bill Gates has invested as well.

Get the details here before this story hits the mainstream media.

Palo Alto Network Inc. (PANW) has been helping customers stay ahead of quickly evolving cybersecurity threats for more than a decade.  For ten years straight, the company has been named a market leader in network firewalls by leading research and advisory company, Gartner.  In fact, it achieved the highest position for ability to execute and the furthest position for completeness of vision in Gartner’s Magic Quadrant for Network Firewalls for 2021, but they haven’t been letting the recognition go to their head.  Over the past few years, Palo Alto has been aggressively expanding its portfolio with big investments and acquisitions.    

In fiscal 2021, Palo Alto’s NGS services generated $1.18 billion in annual recurring revenue (ARR), representing roughly 28% of its top line and surpassing its prior ARR guidance of $1.15 billion.  That segment’s accelerating growth complemented the stable growth of its on-site appliances and services, and its total revenue increased 25% for the full year. 

Palo Alto serves more than 85,000 customers today, compared to about 9,000 customers nine years ago. It expects its revenue to rise 24%-25% in fiscal 2022, and its stock trades at about thirteen times that forecast. 

The consensus among 38 analysts offering recommendations for the stock is to Buy PANW.  There are currently 34 Buy ratings, 4 Hold ratings, and no Sell ratings. 

PAUL MAMPILLY

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