Don’t let this holiday-shortened trading week lull you into a sense of financial slumber. Earnings season continues, and more than a few stocks will be on the move after their respective companies’ latest quarterly numbers come out.
A few of the stocks I hope will step up nicely this week include Palo Alto Networks(NASDAQ: PANW), Booking Holdings(NASDAQ: BKNG), and Walmart(NASDAQ: WMT). They have a lot to prove in the next four trading days. Let’s take a closer look.
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Like a boy band trying to break out into a new genre, Palo Alto Networks can’t seem to get out of the teen market. Year-over-year revenue growth has ranged from 12% to 19% for eight consecutive quarters. Its trailing top-line increase of 15% splits the difference.
Palo Alto stock is a cybersecurity giant with a beefy market cap of $116 billion. It has been profitable, even on a reported basis, through the last three fiscal years. Net margin has been in the double digits for back-to-back years. Palo Alto reports its fiscal second-quarter results shortly after the market closes on Tuesday.
The company’s own guidance calls for more of the same, with revenue rising 14% to 15% for the quarter. The annual recurring revenue for its next-gen security business should be at double that clip. The $0.93 to $0.95 a share that it’s forecasting in earnings per share translates to a 16% increase at the midpoint, but Palo Alto has consistently landed ahead of bottom-line projections over the past year.
At least six analysts lowered their price targets for Palo Alto last week. It’s an encouraging sign to see so many Wall Street pros slash their upside forecasts just days ahead of fresh financials, but the market itself has been repricing the valuation premiums of software-driven tech companies amid the looming challenge of competing with AI innovation.
If you’ve ever booked travel plans online, there’s a good chance you’ve leaned on a Booking Holdings property. This is company behind Priceline, Kayak, and several other niche-specific platforms beyond its popular namesake travel hub.
Booking has posted double-digit revenue growth consistently since the pandemic-related plunge in 2020. Revenue accelerated slightly in 2025, and the year’s performance will become official when Booking announces its fourth-quarter numbers on Wednesday afternoon.
Analysts are projecting a 17% increase in revenue for the quarter, Booking’s strongest quarterly jump in two years. They’re also banking on a similar 17% increase in net profits. With Booking shares down 23% year to date, even a decent report should turn heads.
There are just 11 U.S. exchange-listed companies with market caps north of $1 trillion. Walmart has become the latest member of this exclusive club. The most impressive part of this achievement is that it happened this year, as most of the 10 stocks with higher market caps have been sliding.
Walmart stock has risen 20% this year. The business itself isn’t experiencing a renaissance. It’s still the same steady retail juggernaut you know and either love or avoid. If Palo Alto’s streak of revenue growth in the teens is unimpressive, what if I told you that Walmart is wrapping up its tenth consecutive fiscal year of positive top-line growth — but that the revenue jump has never topped 7% in any year?
Walmart’s recent catapult into a 13-figure market cap is more likely the result of a flight to safety. Walmart is steady, and its trailing revenue of $703 billion has no equal among U.S. businesses. Investors are rotating into dividend-paying companies that are somewhat recession-resistant, and Walmart fits the bill. It reports its fiscal fourth-quarter results on Thursday morning.
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings and Walmart. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.
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