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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.