Investors are finding many new reasons to like Palo Alto Networks (NASDAQ: PANW) right now. The cybersecurity industry is proving to be resilient through the latest downturn in IT spending, and the company is also capitalizing on its newfound profitability.
Risks remain around growth trends, though, and there's a good chance an investor can overpay for this business. With those caution flags in mind, let's take a closer look at whether Palo Alto Networks is an attractive buy candidate today.
The bad news for the business is that clients are taking longer to commit to major cybersecurity deals, and they're being pickier about the size of those contracts. In the company's late May earnings report, CEO Nikesh Arora said the market "continues to become more challenging." Those comments echoed the ones by and other providers of cloud services.
Source Fool.com