Top 10 Stocks to Buy According to Sustainable Insight Capital Management

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

Number of Hedge Fund Holders as of Q4: 83

SICM’s Equity Stake: $15.65 Million 

Palo Alto Networks, Inc. (NASDAQ:PANW) is a leading global cybersecurity firm headquartered in Santa Clara, California, specializing in advanced firewalls and cloud-based security solutions. The company provides services to 80,000 organizations across more than 150 countries, including 85 of the Fortune 100.

Founded in 2005 by Nir Zuk, an engineer with experience at Check Point and NetScreen Technologies, Palo Alto Networks, Inc. (NASDAQ:PANW) quickly emerged as a cybersecurity powerhouse. The company provides a range of cybersecurity solutions, including its Network Security Platform, Cloud-Delivered Security Services, and Next-Generation Firewalls. It also offers Secure Access Service Edge (SASE), comprehensive cloud security solutions, and an AI-driven Security Operations Platform. Additionally, Palo Alto Networks delivers Threat Intelligence and Incident Response Services to help organizations proactively defend against cyber threats.

As of Q4 2024, Sustainable Insight Capital Management held 86,006 shares of Palo Alto Networks, Inc. (NASDAQ:PANW), valued at approximately $15.65 million, making it the third-largest holding in Parker’s portfolio. By the end of the fourth quarter of 2024, 83 hedge funds tracked by Insider Monkey had investments in the company, with a total value of nearly $1.88 billion, an increase from 64 funds in Q3. Palo Alto Networks’ strong market presence, innovative cybersecurity solutions, and growing institutional investment indicate its potential for long-term growth. With increasing global cybersecurity threats and the company’s consistent expansion in AI-driven security and cloud-based services, it remains a compelling stock for investors seeking stability and future upside.

Parnassus Growth Equity Fund stated the following regarding Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q2 2024 investor letter:

“Palo Alto Networks, Inc. (NASDAQ:PANW) has been a profitable position for the portfolio. Given its elevated valuation, we decided to sell it to fund the purchase of Workday, where we see greater opportunity and a clearer story of margin expansion potential.”