Topic: How To Invest

Q: Pat: Can I have your thoughts on Palo Alto Networks as a U.S. tech stock to buy?

Article Excerpt

A: Palo Alto Networks Inc., $159.38, symbol PANW on New York (Shares outstanding: 91.9 million; Market cap: $14.1 billion, www.paloaltonetworks.com), designs and makes firewall security systems to protect computers and mobile devices from online attacks. Instead of imposing blanket bans for entire networks, Palo Alto’s systems analyze traffic and let network administrators control user access to specific websites and applications. Over 45,000 businesses in more than 150 countries use the company’s products. Palo Alto first sold shares to the public at $42.00 and began trading on New York on July 19, 2012. Thanks to growing demand for cyber security products, the company’s revenue jumped 512.4%, from $255.1 million in 2012 to $1.8 billion in 2017 (fiscal year ends July 31). Earnings before unusual items also soared, from $0.15 a share (or a total of $15.3 million) in 2012 to $2.71 a share (or $253.4 million) in 2017. For the three months ended October 31, 2017, Palo Alto’s revenue rose 27.0%, to $505.5 million from $398.1…