The security is fresh off a record high, for starters
Palo Alto Networks Inc (NASDAQ:PANW) had a strong start to 2024, as it hit a Jan. 22 record high of $350.60 and added 15.1% since the beginning of the year. The equity has been consolidating since that peak, trading just 0.2% higher today at $338.58, following yesterday's 2.1% drop -- its largest move lower since Dec. 20.
It may be too early to bet on any downside for PANW, however, as it has a history of positive moves in February. Per data from Schaeffer's Senior Quantitative Analyst Rocky White, PANW ranks fifth on the list of 25 best performing S&P 500 Index (SPX) stocks to own this month, finishing the month higher eight times out of 10 over the past decade with an average 11.2% return.
The security also has a bright post-earnings history, which could work in its favor this month, as it's set to report results after the close on Feb. 19. The stock closed higher after seven of its past eight next-day sessions, with the lone 5.4% drop occurring this past November. Over these past two years, the equity has averaged a post-earnings swing of 8.7%, regardless of direction.