Jim Cramer’s Bold Predictions About These 10 SaaS Stocks

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

Number of Hedge Fund Holders In Q3 2024: 64

Date of Cramer’s Comments: 8-19-24

Performance Since Then: 7.48%

Palo Alto Networks, Inc. (NASDAQ:PANW) is a cybersecurity firm that has seen its fair share of ups and downs on the stock market in 2024. The stock cratered by 28% in February after a guidance cut, but since then, it has gained 40.9%. For the next two earnings reports, Palo Alto Networks, Inc. (NASDAQ:PANW) raised its revenue guidance and topped analyst estimates. Yet, it was the fiscal fourth quarter report in August that led to share price action. In the report, Palo Alto Networks, Inc. (NASDAQ:PANW)’s midpoint annual profit per share estimate of $6.25 beat estimates of $6.19 while $2.19 billion in revenue beat estimates of $2.16 billion. This led to a 7% jump in share price. Palo Alto Networks, Inc. (NASDAQ:PANW)’s shares also rose by 5.1% after Trump’s election win but dropped by 6.2% after the Fed’s rate cut announcements in December. Here’s what Cramer said in August:

“Palo Industries is a fantastic, under-the-radar industrial stock, and given its recent pullback, I think now is the time to buy. When Palo Alto Networks reported back in February, the guidance was considered dismal, and the stock plunged from the $360s to the $260s in a single day. But after speaking to the CEO, what did I do? I told you to stick with it, maybe even do some buying, and we did just that for the Travel Trust because the future is bright for this best-of-breed cybersecurity play. Sure enough, since then, the stock has been a juggernaut, closing at $343 today and rallying in after-hours trading. Palo Alto reported a strong top and bottom line beat with very encouraging guidance for the 2025 fiscal year, which has already started.”