Investors have abandoned many cloud-services stocks in the wake of the pandemic on fears that demand gains will collapse as the world returns to more normal working patterns. But the cloud-security niche is showing no signs of such a growth hangover.

Palo Alto Networks (NASDAQ: PANW) recently announced strong sales trends through its fiscal fourth quarter that ended in late July. Management also projected another year of more than 20% annual sales gains ahead.

Yes, investors shouldn't read too much into short-term operating trends. But Palo Alto Networks' success implies bigger earnings gains ahead as the company prepares to reach $7 billion in annual sales.

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Source Fool.com