Diamonds and Dogs

11/24/15

Terrorist threats have put security software front and center. Palo Alto Networks (PANW) is the diamond to up 6% following better than expected earnings and guidance. The Santa Clara firm known for their next-generation firewalls, threat intelligence cloud and advanced endpoint protection topped estimates by 3 cents while revenue easily beat estimates as well. Compared to last year, earnings more than doubled while sales grew by more than $100 million. The guidance for next quarter is also better than expected with earnings projected to be 3-4 cents a share higher while revenue should improve by $20 million more. Palo Alto's having a good year with the stock up over 50% year-to-date, but analysts remain bullish on stock with price targets of $210, $210, $205, and $225 a share.   

At least the country fried steak will stay the same with today's dog. Cracker Barrel Old Country Store (CBRL) closed down 6% near its 52 week low following quarterly earnings. Earnings actually easily beat estimates while sales grew 2.8% year over year, but investors were not in the buying mood continuing a disappointing theme in the retail space for November. Known for their Southern country biscuits and gravy, ham, country fried steak, fried chicken along with their gift shop sells toys, trinkets, and homemade candy, Cracker Barrel beat estimates thanks to cost cuts. Same store sales were actually challenging during the month of October due to soft consumer spending. The stock does provide a healthy dividend of 3.2% for investors awaiting a rebound in spending.