Palo Alto Networks (PANW)

Really likes cybersecurity as a theme. PANW and CRWD are probably the 2 standout majors in the space, both pretty expensive. Both growing ~20% in revenues. Well positioned. Even if you bought here, you'd probably still do well. Try for a better entry point for more outsized returns. 

Fundamentals justify cybersecurity's high valuations.

Her pick has been NET, growing a bit faster.

It's up 108% this year. It's the top cybersecurity stock, his core holding here. He's been adding shares in recent months.

(The theme of today's Top Picks is cybersecurity, which is going to be a big deal. All the AI systems will have to be made more secure. Each of today's picks has already had a good run.)

Identity and endpoint security. Like the Home Hardware of cybersecurity. Suite of products for small- and medium-sized companies. Sweet margins. Price target of $337, runway's not that long. Buy a third here, another ~$300 (you'll get your chance over the next year), and the final third ~$285. No dividend.

Probably the one you want to get into, if you can get it at the right price.

Is up 89% this year. Revenues are up 31%, and RPO is up 36%. They spent $30 billion on three deals this year, so those synergies are still coming. Trades at 22x price-to-sales, but CRWD is higher.

Likes cybersecurity, but look at the move on the chart since April, and now it's gone parabolic -- doesn't like that trend. He doesn't want to be that buyer when everyone else is getting out.

That said, expects significant growth in security markets. Premier name, great company. Wait for a better entry point. The recent pullback is not enough. Be patient, you'll get your chance. Below $200 would be the time to take a look.

He wants to get back into the cybersecurity space. AI threats are increasing cyber budgets for governments and businesses. It has secular growth. He will go back into PANW or CRWD.

He likes the moat around the cybersecurity incumbents. Fears that Anthropic and AI would break cyber companies were overblown.

Is in a strong uptrend with higher highs since late February. Each pullback has been a fine buying opportunity with strong volumes. The Chakykin Money Flow shows strong institutional buying which surprised him in a good way. Are lots of options flows. The market is bullish.

Last Friday, the CEO bought $10 million of shares. Anthropic isn't a threat, but is really a tailwind. These cyber stocks won't jump tight back up in this difficult market, though.

After talking to tech CEOs, she doesn't believe AI will take over their business like PANW's but rather will get even more business as companies use more AI to code. Doesn't see the catalyst with PANW, but fundamentals are strong and product revenues and margins are growing. They will buy back $1 billion in shares. Trades at 10x price to sales (CRWD is at 25x). She will stick with it and will eventually buy more, though present weakness is frustrating.

He just bought more at $160. Expects cybersecurity stocks to embrace AI and does not expect Anthropic to take over this sector.

All cybersecurity sold off on earnings for some reason. More AI demands more cybersecurity, and since the Iran war, these stocks have been on a tear.