184.03 -4.01 (-2.18%) Sell

Want to invest in PANW? Avoid as it ranked among the worst performers

13 min read

PALO ALTO NETWORKS INC ranked among the worst performers on Friday. It returned -2.18% to close at 184.03. It is currently trading -22% below it's 52 week high of 236.23.

[Themes containing PANW]

PANW showed a strong down trend over the last 3 months. During this period PANW returned -20.68% and saw a maximum drawdown of -30.17%. There was a short signal during this period which returned +14.69%.


PANW has been outperforming the SP500 index in recent time. Over the last 2 years 11 months and 10 days, PANW underperformed the SP500 index on 48% days. Which indicates that on days PANW underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months PANW was mostly loss making and delivered on average -0.34% per day. It's best return during this period (of +5.97%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -5.75%) was on Wednesday, 24 Oct, 2018. There was initially a bearish trend during this period which started on 25 Sep, 2018 and went on till 10 Oct, 2018. The trend delivered -12.92% losses to investors. This was followed by a bullish trend that started on 10 Dec, 2018 and ended on 12 Dec, 2018. This bullish trend delivered +8.03% to investors.

On monthly basis, PANW delivered profits in more months over the last year, than losses. PANW delivered profits less regularly than SP500 index. PANW was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -18.58% compared to -7.28% returned by SP500 index in Oct 2018. PANW had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year.

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PANW is becoming less volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in PANW's volatility from 2 Oct, 2018 to 30 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that PANW has significant positive skewness in it's return distribution. This indicates that investors can expect PANW to recover from drawdowns quickly. Which makes PANW a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in PANW derivatives at this moment can consider 'Covered Call' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than PANW. Therefore, SP500 must receive a lower allocation than PANW in your portfolio. PANW usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in PANW), if you are an investor in OPNT, you need to be extra careful (consider limiting your exposure or diversifying) as it is extremely unpredictable and therefore risky.

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