15 Best Growth Stocks to Buy for the Next 5 Years

9. Palo Alto Networks (NASDAQ:PANW)

Number of Hedge Fund Holders: 64

5-Year Revenue CAGR: 22.41%

Upside Potential as of January 15: 144.80%

Palo Alto Networks (NASDAQ:PANW) is a cybersecurity company. Its flagship product, Prisma Access, is a SASE platform that integrates network security functions like FWaaS, threat prevention, and DLP. It provides edge protection for applications, users, and devices. This means that it shields company computers and devices from online threats by combining various security features, like firewalls and data protection.

Citi reiterated a Buy rating on the company recently with a $216 price target, due to the increasing demand for cybersecurity solutions because of AI-powered threats. It uses AI-driven ‘Precisions AI’ for automated cyber defense, giving the company a competitive advantage. The cybersecurity market is thriving due to the accelerating adoption of AI, which is also fueling the sophistication of cyber threats.

Palo Alto Networks (NASDAQ:PANW)  is focused on platformization. Gartner predicts that by 2028, 45% of organizations will use fewer than 15 cybersecurity tools and the demand for consolidated platforms will rise. This company’s platform strategy centers around AI and automation, using ‘Precision AI’ to analyze data from various security sources and automate threat responses. This approach is exemplified by XSIAM, which is an advanced security platform. It is effectively replacing legacy SIEM solutions and older security systems like QRadar. Platformization and AI-powered innovation will continue to drive sustainable growth for Palo Alto Networks (NASDAQ:PANW).