12 Best Edge Computing Stocks to Invest in According to Analysts

8. Palo Alto Networks Inc. (NASDAQ:PANW)

Average Analyst Upside: 12.48%

Number of Hedge Fund Holders: 64

Palo Alto Networks, Inc. (NASDAQ:PANW) is a prominent American cybersecurity firm specializing in comprehensive security solutions for applications, users, and devices. Its Secure Access Service Edge (SASE) platform, Prisma Access, delivers advanced edge resource protection by integrating Firewall as a Service (FWaaS), threat prevention, DNS security, and data loss prevention (DLP), combined with the robust features expected from a leading network security provider.

The company recently posted strong financial results, reporting a 14% increase in total revenue to $2.14 billion and a 13% rise in earnings per share. Additionally, its Next-Generation Security Annual Recurring Revenue grew by an impressive 40%, surpassing $4.5 billion. However, calculated billings fell 14% year-over-year, missing analyst expectations. Following the earnings report, TD Cowen reaffirmed a Buy rating on the stock and raised its price target from $400 to $420.

Palo Alto Networks, Inc. (NASDAQ:PANW) continues to advance its platformization strategy, with notable achievements including the acquisition of QRadar SaaS, which contributed $74 million to its Next-Generation Security ARR, and the introduction of the Prisma Access Browser, which has already garnered over 115 new customers.

As of Q3 2024, 64 hedge funds tracked by Insider Monkey held stakes in Palo Alto Networks Inc. (NASDAQ:PANW).