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Why Palo Alto Networks Stock Could Stage a Comeback

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How has Palo Alto Networks stock performed?

Shares of leading cybersecurity company Palo Alto Networks (PANW) have fallen close to 15.0% since April 2019. Despite the recent pullback, PANW has gained almost 10.0% since the start of 2019.

PANW had an encouraging run in 2018, when it gained 22.5% in market value. In comparison, the broader markets had a disappointing 2018. Like most cybersecurity stocks, PANW has created significant investor wealth over the years. PANW has returned 64.5% in the last three years and 158.0% in the last five years, easily outperforming the broader markets in the long run.

PANW stock is currently trading 29.0% above its 52-week low of $160.08 and 21.0% below its 52-week high of $260.63. The SPDR S&P 500 (SPY) has generated a return of 18.9% YTD (year-to-date). It’s gained 8.8% in the last 12 months, 51.1% in the last three years, and 66.3% in the last five years.

The Invesco QQQ Trust, Series 1 ETF (QQQ) has generated a return of 22.6% YTD. QQQ has risen 7.2% in the last 12 months, 81.8% in the last three years, and 113.5% in the last five years.

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What do the technical indicators suggest?

PANW is trading at $206.64, which means that it’s trading at the following levels:

  • 10.0% below its 100-day moving average of $229.54
  • 8.2% below its 50-day moving average of $225.01
  • 0.9% above its 20-day moving average of $204.73

RSI and MACD

PANW has an MACD (moving average convergence divergence) score of 5.01. A stock’s MACD marks the difference between its short-term and long-term moving averages. PANW’s positive MACD score indicates an upward trading trend.

PANW stock has a 14-day RSI (relative strength index) score of 44, which shows that its stock is trading close to oversold territory. An RSI score of above 70 indicates that a stock is overbought, while an RSI score of below 30 indicates that a stock is oversold.

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