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Barchart
Mark R. Hake, CFA

Palo Alto Networks Looks Too Cheap Due to Its Strong FCF - Short Put Plays are Attractive

Palo Alto Networks (PANW) stock looks way too cheap here. This is based on its strong free cash flow (FCF) and FCF margins. Its adj. FCF was up 7.5% YoY and FCF margins are high at 38.8%. This makes short-put plays attractive here both as an income play and a way to buy in cheaply.

As of morning trading on Monday, April 15, PANW is at $275.05, down 26% from its recent peak of $371.97 on Feb. 12. The stock is now near its lows after the Feb. 20 release of its fiscal Q2 earnings for the quarter ending Jan. 31.

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