Palo Alto Networks Inc (NASDAQ:PANW) stock is on track to close out 2025 with a modest 2.9% lead, but has been stalling out below the $190 region since it failed to conquer the $200 level earlier this month. The stock may break out of this malaise in 2026, however, thanks to a historically bullish signal now flashing, pushing it back toward its Oct. 23, all-time high of $223.61.
More specifically, PANW is within 3% of its 12-month moving average, after closing above it for the past five months. According to Schaeffer's Senior Quantitative Analyst Rocky White, this signal has occurred seven times over the past 20 years, after which the security was higher one month later 71% of the times with an average 11.2% gain. Three months later, the security averaged an even larger 26.8% pop, with all of those returns positive.
When weighing in on Palo Alto Network stock's next moves, options look like a solid way to go. The stock's Schaeffer's Volatility Index (SVI) of 26% sits in the low 1st percentile of annual readings, suggesting options traders are now pricing in low volatility expectations.
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