5 American Stocks That Will Benefit from the New Cold War

1. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 90

Palo Alto Networks, Inc. (NASDAQ:PANW) is a California-based company that provides cybersecurity solutions worldwide, marketing and selling its products and services through channel partners, as well as directly to enterprises, service providers, and entities operating in the education, energy, financial services, healthcare, internet and media, manufacturing, and telecommunications sectors. Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the American stocks that stand to benefit from the new Cold War, as companies and government institutions rapidly shore up their cyber defenses. 

On September 16, MKM Partners analyst Catharine Trebnick initiated coverage of Palo Alto Networks, Inc. (NASDAQ:PANW) with a Buy rating and a $250 price target as part of a broader research note on the Cyber Security Software Sector. Palo Alto Networks, Inc. (NASDAQ:PANW) is the analyst’s top pick given the firm’s 75% revenue from subscription services. She further cited the company’s land-and-expand strategy and noted that Palo Alto Networks, Inc. (NASDAQ:PANW)’s deals are getting larger, with longer term deals up from $28 million a few years ago to $75 million now.

Among the hedge funds tracked by Insider Monkey, David Blood and Al Gore’s Generation Investment Management is a prominent stakeholder of Palo Alto Networks, Inc. (NASDAQ:PANW), with 733,482 shares worth $362.3 million. Overall, 90 hedge funds were bullish on the stock at the end of June 2022, up from 87 funds a quarter ago. 

In its Q1 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Palo Alto Networks, Inc. (NYSE:PANW) was one of them. Here is what the fund said:

“The portfolio also saw solid performance from cybersecurity names Palo Alto Networks, Inc. (NYSE:PANW) which is gaining prominence as the risk of global cyber attacks increases as part of the Russian offensive. On an individual stock basis, leading contributors to absolute returns in the first quarter included positions in Palo Alto Networks.”

You can also take a look at Best Airline Stocks To Buy and Best Alternative Energy Stocks To Buy. 

Follow Insider Monkey on Twitter