In a recent CNBC Guest of the Investment Club’s “Morning Meeting”. Jim Cramer expressed his point of view on the execution of Palo Alto Networks Inc PANW AND Constellation Brands Inc STZ.
What happened: Cramer on Friday noted that the U.S. stock market had a strong week, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all poised to post significant weekly gains, CNBC reported.
He attributed this to the Federal Reserve’s indication of three interest rate cuts expected this year.
Despite this, Cramer cautioned investors against speculating on the timing of these rate cuts, advising them to focus instead on quarterly earnings. He also mentioned that Palo Alto Networks has been “overly punished” this year, with its shares down about 2% year to date, in contrast to the S&P 500’s 10% gain.
Cramer, who is considering buying more shares of the cybersecurity company, cited the CEO Nikesh Aroracommented positively on the company’s new “platformization” strategy as a potential indicator of future performance.
Despite a recent decline in the stock following a cut in revenue forecasts due to changing business strategy, Cramer and Club see this as short-term pain for long-term earnings.
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On the other hand, Wall Street analysts were bullish Constellation marks, with Piper Sandler initiating coverage with a buy-equivalent rating and a $300 per share price target. Cramer also expressed optimism about the company’s future, predicting the stock will “go much higher.”
Because matter: Short-term interest in Palo Alto Networks is declining, indicating more bullish sentiment among investors. This is in line with Cramer’s view that the company’s recent difficulties may be temporary.
Analysts have also provided a mix of bullish and bearish ratings for Palo Alto Networks. The average price target for the stock is $352.03, with a high estimate of $450 and a low estimate of $265.
Price Action: According to data from Benzinga Pro, Palo Alto shares closed at $286.78, down 0.30% from the previous close.
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This content was partially produced with help from Benzinga Neuro and has been reviewed and published by Benzinga editors.
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