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Palo Alto Networks, Inc. (PANW) stock rose nearly 3% in Friday's premarket trading as investors returned to large-cap technology and cybersecurity stocks ahead of next week's earnings.
The broader market also showed strength. Nasdaq futures gained 0.27%, while S&P 500 futures rose 0.30%.
Palo Alto Networks shares rebounded after a recent pullback, supported by improving market sentiment.
The stock has gained 57.57% over the past 12 months, reflecting strong investor interest in cybersecurity.
CNBC's Jim Cramer recently expressed confidence in cybersecurity leaders Palo Alto Networks (PANW) and CrowdStrike Holdings (CRWD), saying he preferred both companies over Netskope (NTSK), which he described as another cloud security platform.
The company provides network, cloud and security operations solutions. It serves more than 80,000 enterprise customers worldwide, including over 75% of the Global 2000.
Investors are now watching its upcoming earnings report for signs of continued demand for cybersecurity services.
Palo Alto Networks is scheduled to report earnings on Nov. 18.
Analysts expect earnings of 97 cents per share, compared with 93 cents a year earlier. Revenue is expected to reach $3.31 billion, up from $2.47 billion.
The stock carries a consensus Buy rating and an average price forecast of $412.50.
Jefferies maintained its Buy rating Thursday but lowered its price forecast to $400.
Citigroup raised its price forecast to $440 in October, while Wells Fargo increased its forecast to $525.
Palo Alto Networks trades above its 200-day simple moving average (SMA) of $276.50. However, it remains below its 20-day SMA of $351.89 and 50-day SMA of $367.70.
The setup suggests the longer-term uptrend remains intact, although near-term momentum has weakened.
The moving average convergence divergence (MACD) indicator remains below its signal line, pointing to fading buying pressure.
Traders are watching resistance near $368.50 and support around $312.
Palo Alto Networks' MarketDash Edge scorecard shows strong momentum but weak valuation and growth scores.
Its Momentum score stands at 90.66, while Value and Growth scores are 1.45 and 29.57, respectively.
The contrast highlights the stock's premium valuation and potential volatility ahead of earnings.
PANW Stock Price Activity: Palo Alto Networks shares were up 2.89% at $332.00 during premarket trading on Friday, according to market data.
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