Why Palo Alto Networks Stock Should See a Breakout
Though the cybersecurity industry has grown during the last few years, the benefits of that expansion have not necessarily accrued to Palo Alto Networks (NYSE: PANW). And this year, the COVID-19 pandemic has caused its earnings to fall -- a common problem -- as the contagion and global efforts to contain it caused widespread uncertainty among most of its customers.
However, while the current situation may not bring shareholders much comfort, the long-term investment thesis for Palo Alto stock remains intact. As more entities move more of their digital operations to the cloud, the growing need for the type of security Palo Alto provides should result in its stock becoming a winning play.
Palo Alto stock set a new all-time high in February. However, like most other stocks, it fell sharply during the downturn, declining by almost 50% from its peak. Though it has recovered most of that lost value in recent months, it still trades at approximately 12% below its 2020 high.
Source Fool.com
