Is This Cybersecurity Stock-Split Stock a Buy Now?

Looking into companies that have recently split their stock is a fairly smart investing strategy. It's not that stock splits in and of themselves are special. It's that companies usually split their stock for one reason: The stock price has risen a lot. While some may see that as a red flag, that's a poor way of looking at it. stock prices rise over the long term when the company is doing well, and finding companies that are doing well is a key part of investing.

One recent stock split is Palo Alto Networks (NASDAQ: PANW), which split its stock 2-for-1 on Dec. 16. Palo Alto is also a top company in the cybersecurity space, a critical sector slated to see massive growth as we become more reliant on technology.

Palo Alto Networks is a mixture of old-generation and next-generation security products. It still has its legacy firewall business that it's working on bringing toward next-gen status, but it also has a strong offering of next-gen security tools that incorporate AI. One of the main use cases for this type of software is endpoint protection, which protects network access points like a laptop or computer from being hacked. Palo Alto's platform for this product line was named a leader in this space by Gartner (NYSE: IT), but it's far from the only competitor.

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Source Fool.com