Jim Cramer’s Take on 24 Stocks: Cisco, Eli Lilly, and Ford

12. Palo Alto Networks, Inc. (NASDAQ:PANW)

Palo Alto Networks, Inc. (NASDAQ:PANW) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. Cramer noted that the company’s CEO is doing an “incredible job,” as he said:

Okay, we’re going to start with the daily chart of Palo Alto Networks, which I own for the Charitable Trust and have, again, for ages. It’s Lang’s favorite. He knows that Palo Alto’s been in a strong uptrend… with a series of higher highs and lower highs… going back to late February. In the recent past, every pullback here has been met with a pretty terrific buying opportunity, and the stock’s latest rally allowed it to break out above its ceiling of resistance, going back to the early December high, and it made that move on strong volume… Remember, when we think about this, the volume is like a polygraph. When a stock moves on high volume, it means the move is usually telling the truth.

…When you look at the moving average convergence divergence or the MACD line… This is an important momentum indicator. It can help predict the stock’s trajectory. It throws off a clear bullish crossover right here, okay? That’s where the black line crosses above the red, and it’s among the most reliable indicators that there are, very positive. And there’s a thing called the Chaikin Money Flow, the CMF, named after Mark Chaikin, down at the bottom, which tells you when big institutions are buying or selling. And look at this, look at this. Right now, it shows incredibly aggressive institutional buying in Palo Alto Networks. That’s really kind of extraordinary.

The big boys are suddenly buying this thing hand over fist. That shocked me, made me feel very confident about the stock. Now, the stock’s currently just over $210. Lang thinks it’s headed back to $235, that’s great news for the Charitable Trust, above its previous all-time high of $233 and change. We’re taking a breather then. Then it’s going to take another run, maybe to $275, $280… He also likes the option flow… People are bullish on Palo Alto. I cannot blame them. This is Nikesh Arora. He’s done an incredible job.

Palo Alto Networks, Inc. (NASDAQ:PANW) provides cybersecurity platforms that include network protection, cloud security, AI-driven security operations, attack surface management, and subscription-based threat prevention.