Do you consider a major blackout possible for railways, electricity and gas suppliers? At least the Federal Office for Information Security (BSI) has recognized an „increased threat situation“ since the beginning of the Ukraine war! This should be sufficient reason to take a look at cybersecurity stocks.

Comprehensive security concepts from Palo Alto The company offers comprehensive security solutions for the internet, including firewalls and cloud-based solutions. In the large customer segment, Palo Alto Networks holds a market share of around 85 percent and numerous trade magazines consider the Californians to be the market leader in the field of cybersecurity.

Profitability since 2023 The success is also reflected in the fundamental key figures. The revenue curve knows only one direction and in 2023 the profit zone was reached. Common sense tells us that the threat situation will remain critical and the expertise of Palo Alto Networks will continue to be in high demand.

Company development of Palo Alto Networks; Source: aktienscreener.com

Picture-perfect setup: pullback in an uptrend! In the chart, you can see a series of higher lows and higher highs. This means that an uptrend is present. At the same time, you can see a pullback from the all-time high reached in mid-December to the support line at around 285 USD, as well as a reversal candle at the end. The constellation leads us to expect a bounce towards the all-time high for the next few days. It is also advantageous that the risk range is manageable, so you cannot lose much with a consistent stop loss. Cautious traders have the quarterly figures on February 14 in mind and close the trade in advance. Around this date, the security could show increased volatility.

Palo Alto Networks stock (ISIN US6974351057) – 1 year in daily chart; Source: aktienscreener.com

Conclusion It doesn’t get much more bullish than with Palo Alto Networks!