We recently compiled a list of the Jim Cramer Is Focused on These 15 Stocks This Week. In this article, we are going to take a look at where Palo Alto Networks, Inc. (NASDAQ:PANW) stands against the other stocks Jim Cramer is focused on this week.
Jim Cramer, the host of Mad Money, recently addressed some of the major events for Wall Street this week, focusing on earnings reports and investor days of various companies. With post-election jitters affecting the market, he warned investors to proceed with caution, as uncertainty looms over the economic landscape.
Cramer referred to Trump’s unpredictable nature, saying, “He is mercurial. Turns out he’s capricious.” Reflecting on the mood among investors, Cramer remarked that many were asking themselves, “What were we thinking?” as they processed the aftermath of the election.
He also noted the unsettling impact of Trump’s appointments to key administration positions, saying that “heads are turning” in response to some of these picks, and suggested that investors might soon feel the air leaving the post-election optimism that had initially lifted the market.
Cramer went on to caution that while there are certainly opportunities in individual stocks, especially in the wake of Trump’s policies, many stocks are still trading at levels far above where they were just a few months ago. He explained:
“Look, I’ve told you that there are many pitfalls with individual stocks when it comes to Trump 2.0. Most of them are buying opportunities but with stocks still up so much from a few months ago, you can’t be too eager to buy the dips.”
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Despite new stocks sparking interest, Cramer emphasized that he needed more time to assess market conditions before making any significant moves. He expressed a preference for waiting, stating that he doesn’t like to buy stocks only to watch them decline immediately after, a scenario he feels is likely if he rushes in too soon.
Cramer concluded by summarizing his outlook on the market, saying:
“So let me give you the bottom line: Even though the post-Trump rally hangover has been vicious, it still hasn’t taken most of the market down to levels where I think it makes sense to buy. Now, I just gave you some nuggets. I think they could be golden, but I think it’s more important to prepare yourself for better opportunities, at least in the near future.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 15 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A cutting-edge computer lab full of IT experts monitoring the security of multiple systems.
Palo Alto Networks, Inc. (NASDAQ:PANW)
Cramer highlighted that Palo Alto Networks, Inc. (NASDAQ:PANW) stock often experiences a sell-off when it reports, which could present a buying opportunity.
“Then after the close Wednesday, we get big and then bigger. Palo Alto Networks and NVIDIA. Palo Alto’s had a gigantic move, just like all the cybersecurity stocks. The stock has sometimes sold off badly when it reports, could be an opportunity.”
Palo Alto (NASDAQ:PANW) is recognized as one of the largest cybersecurity companies globally, providing a wide array of security solutions designed to protect organizations from evolving digital threats. As reported in the final quarter of fiscal 2024, the company saw a significant increase in its annual recurring revenue from its next-generation security customers. Specifically, revenue from this segment surged by 43%, reaching $4.2 billion.
The company is optimistic about the continued growth of its next-generation security platform. The company projects that its annual recurring revenue from this segment will exceed $15 billion by 2030. This forecast is underpinned by the expectation that a substantial number of its top customers will adopt a platform approach to cybersecurity in the coming years. Specifically, the company anticipates that 3,500 of its top 5,000 customers will transition to using its integrated platform solutions.
On November 19, Jefferies raised the price target on Palo Alto (NASDAQ:PANW) to $450 from $400 and kept a Buy rating. The firm expects the company to report solid Q1 results, with a modest upside to its year-over-year RPO (Remaining Performance Obligations) guidance of 19%-20%.
However, the analyst notes that weaker network security trends and moderating survey results could limit the potential upside. While Jefferies does not foresee significant growth in RPO for FY25, it remains confident in the company’s long-term consolidation strategy and its ability to generate strong free cash flow over time.
Overall PANW ranks 10th on our list of stocks Jim Cramer is focused on this week. While we acknowledge the potential of PANW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PANW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
