# How Palo Alto Networks (PANW) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/panw
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on PANW alone. It places PANW (Palo Alto Networks, Inc.) against 20+ popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where PANW stands in the market, and of the alternatives worth a closer look.

Period covered: PANW's full trading record, from July 2012 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** PANW has run far ahead of the market, rising 101% over the past 6 months against 9.1% for the S&P 500 and 11.2% for the Nasdaq 100. Its cybersecurity peers were far apart over the past 6 months, from OKTA (up 156%) to NET (Cloudflare, up 42.3%).
- **Stock or market?:** The weakness is PANW's own: it fell 2.4% over the past 3 months while the cybersecurity ETF CIBR (First Trust Nasdaq Cybersecurity ETF) rose 9.4%. The S&P 500 rose 3.9%. Its cybersecurity peers did not move as one over the past 3 months: CRWD (CrowdStrike) rose 14.5%, while AKAM (Akamai Technologies) fell 27.2%.
- **Past 1 to 3 years:** Over the past year, PANW rose 60.6% against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100. The same gap shows up over 3 years (180% against 89.3%). Even so, the last two calendar years both went the same way: PANW rose 1.2% in 2025, against 15.8% for the S&P 500 and 17.9% for the Nasdaq 100.
- **Long term:** PANW turned $10,000 into $137,000 over the past decade, against $42,100 in the S&P 500. PANW's 10-year return of 1,274% puts it ahead of 97% of the stocks worth at least $300 million with that much history. The S&P 500 returned 321%.
- **In a crash:** Across four sell-offs, PANW has typically fallen 1.8 times as far as the S&P 500. Even so, in the 2022 bear market, PANW held up better than CRWD (CrowdStrike), NET and ZS; only CHKP (Check Point Software Technologies) and QLYS fell less.
- **Diversification:** PANW is some diversification, but not a hedge: a correlation of 0.35 with the S&P 500 over 5 years and 0.36 with the total US market, less closely than 61% of stocks worth at least $300 million.
- **Better options**
  - **Popular alternatives:** FTNT (Fortinet) was ahead of PANW in most short and long periods.
  - **Nearby categories and themes:** SMH (VanEck Semiconductor ETF, semiconductors) earned more than PANW with less volatility over the past 5 years: 33.4% a year at 36.9% volatility, against 31.9% a year at 43.4%.
  - **Whole market:** Few investments have done better on both counts: only 42 of the 3,633 stocks and funds worth at least $500 million earned more than PANW with less volatility over the past 5 years, among them LLY (Eli Lilly and Company), HSBC and GE (GE Aerospace).

## How much would $10,000 in PANW have grown?

This chart tracks a hypothetical $10,000 investment in PANW over the past 14 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of PANW over the same span and PANW's popular alternatives, among those that traded for the entire period.

- $10,000 invested in PANW at the end of September 2012 would have grown to $387,235 by September 2026, more than the $67,346 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of PANW, and NVDA finished highest, at $7,517,992.

## PANW at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- PANW's deepest decline since it began trading in 2012 was 48.0%, from February 2019 to March 2020. It took four months from the low to climb back to its old high.
- Over 13 full calendar years, PANW's best was 2014, when it returned 113%, and its worst was 2016, when it lost 29.0%. It lost money in two of those years.
- PANW is 19.0% below its all-time high.

- Type: Stock, Technology (Software - Infrastructure)
- Trading since: July 20, 2012
- Market value: $278B
- Volatility (5 years): 43.4%; Sharpe ratio: 0.86
- Worst decline ever: −48.0%, from February 27, 2019 to March 18, 2020; back at its high by July 31, 2020

| Period | PANW total return |
| --- | --- |
| 1 month | −8.5% |
| 3 months | −2.4% |
| 6 months | +101% |
| year to date | +89.7% |
| 1 year | +60.6% |
| 3 years | +180% |
| 5 years | +299% |
| 10 years | +1,274% |

## PANW against the whole market

Where PANW ranks among every stock and fund, and what across the market has done better.

### How does PANW rank among all stocks?

This section ranks PANW on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- PANW's 10-year return ranks in the top 3% of the 2,202 stocks worth at least $300 million with 10 years of history.

| Measure | PANW | Rank |
| --- | --- | --- |
| 1-year return | +60.6% | 411 of 3,287 (top 13%) |
| 3-year return | +180% | 467 of 3,017 (top 16%) |
| 5-year return | +299% | 172 of 2,893 (top 6%) |
| 10-year return | +1,274% | 72 of 2,202 (top 4%) |
| Volatility, 5 years | 43.4% | 1,633 of 2,893 (top 57%) |
| Sharpe ratio, 5 years | 0.86 | 217 of 2,893 (top 8%) |
| Worst decline, past 10 years | −48.0% | 382 of 2,187 (top 18%) |

### What has beaten PANW on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 41 stocks and one ETF worth at least $500 million sit in the green region: each earned more than PANW over the past 5 years with smaller price swings. That is 1% of the 3,633 screened. Few investments beat it on both counts.
- Among those with at least half PANW's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 43% less than PANW's 43.4%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.86 for PANW. INSW earned the most, 56.5% a year, while still swinging less than PANW (40.5% against 43.4%).
- None of PANW's popular alternatives made it, but SMH (semiconductors) did: 33.4% a year at 36.9% volatility, 15% less than PANW's 43.4%.

### Is there a better investment than PANW?

The table below lists investments that beat PANW over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among PANW's popular alternatives, FTNT was ahead of PANW in most short and long periods.
- Looking beyond its popular alternatives, SMH (semiconductors) earned more than PANW with less volatility over the past 5 years: 33.4% a year at 36.9% volatility, against 31.9% a year at 43.4%.
- Few investments have done better on both counts: only 42 of the 3,633 stocks and funds worth at least $500 million earned more than PANW with less volatility over the past 5 years, among them LLY, HSBC and GE.

The 15 strongest of 42 investments that beat PANW over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with PANW | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| PANW: Palo Alto Networks, Inc. (this page) |  | +31.9% | 43.4% | 0.86 | −48.0% | +1,274% |  |  |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | Pharmaceuticals | +40.7% | 32.8% | 1.21 | −34.5% | +1,807% | 0.19 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Smaller losses in recent crashes |
| [MPC](https://easycompare.io/research/mpc): Marathon Petroleum Corporation | Oil & Gas | +51.2% | 33.4% | 1.41 | −79.7% | +1,387% | 0.02 | Higher return, lower volatility; Higher return in most periods |
| [CAH](https://easycompare.io/research/cah): Cardinal Health, Inc. | Health Care Distribution | +42.1% | 24.7% | 1.55 | −46.1% | +349% | 0.25 | Higher return, lower volatility; Higher return in most periods |
| DHT: DHT Holdings, Inc. | Marine Shipping | +38.7% | 39.0% | 1.04 | −39.7% | +1,050% | -0.03 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| INSW: International Seaways, Inc. | Oil & Gas | +56.5% | 40.5% | 1.31 | −57.4% | — | -0.07 | Higher return, lower volatility; Higher return in most periods |
| [VLO](https://easycompare.io/research/vlo): Valero Energy Corporation | Oil & Gas | +44.2% | 36.9% | 1.18 | −71.9% | +1,061% | -0.04 | Higher return, lower volatility; Higher return in most periods |
| [TRGP](https://easycompare.io/research/trgp): Targa Resources Corp. | Oil & Gas Midstream | +41.8% | 31.7% | 1.27 | −90.8% | +829% | -0.03 | Higher return, lower volatility; Higher return in most periods |
| [MCK](https://easycompare.io/research/mck): McKesson Corporation | Health Care Distribution | +38.7% | 25.0% | 1.44 | −38.1% | +586% | -0.07 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [APH](https://easycompare.io/research/aph): Amphenol Corporation | Electronic Components | +33.8% | 32.2% | 1.07 | −37.5% | +965% | 0.26 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| CIB: Grupo Cibest S.A. | Banks | +32.9% | 32.9% | 1.03 | −70.4% | +345% | 0.04 | Higher return, lower volatility; Higher return in most periods |
| ESLT: Elbit Systems Ltd. | Aerospace & Defense | +39.8% | 34.6% | 1.15 | −35.4% | +765% | -0.02 | Higher return, lower volatility; Higher Sharpe, smaller worst decline |
| [PWR](https://easycompare.io/research/pwr): Quanta Services, Inc. | Engineering & Construction | +39.3% | 37.2% | 1.08 | −45.5% | +2,045% | 0.04 | Higher return, lower volatility; Smaller losses in recent crashes |
| EZPW: EZCORP, Inc. | Financial - Credit Services | +33.2% | 35.4% | 0.99 | −76.6% | +202% | 0.04 | Higher return, lower volatility; Higher return in most periods |
| [PBR-A](https://easycompare.io/research/pbr-a): Petróleo Brasileiro S.A. - Petrobras | Integrated Oil & Gas | +51.8% | 37.5% | 1.31 | −71.7% | +768% | -0.07 | Higher return, lower volatility |
| [HWM](https://easycompare.io/research/hwm): Howmet Aerospace Inc. | Aerospace & Defense | +47.3% | 32.5% | 1.36 | −68.9% | +1,028% | 0.05 | Higher return, lower volatility |

## PANW against its popular alternatives

The investments people most often weigh against PANW, compared period by period and year by year.

### How do PANW's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- None of the 21 popular alternatives earned more than PANW over the past 5 years with smaller price swings, so every higher return on the map came with a bumpier ride.
- 11 of the 21 popular alternatives earned less than PANW over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, PANW returned 31.9% a year, more than the S&P 500's 12.7%, with higher volatility (43.4% against 17.1%).

### Has PANW consistently beaten its popular alternatives?

This section compares PANW with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Only one of the 21 popular alternatives, FTNT, outperformed PANW in at least 3 of 5 short-term and 2 of 3 long-term timeframes.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of PANW | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| PANW: Palo Alto Networks, Inc. (this page) | +60.6% | +180% | +299% | +1,274% |  |  | 0.86 |
| [FTNT](https://easycompare.io/research/ftnt): Fortinet, Inc. | +101% | +203% | +156% | +2,626% | 5/5 short-term, 2/3 long-term | consistent | 0.65 |
| [CRWD](https://easycompare.io/research/crwd): CrowdStrike Holdings, Inc. | +80.6% | +409% | +221% | — | 4/5 short-term, 1/3 long-term |  | 0.71 |
| FFIV: F5, Inc. | +54.0% | +208% | +120% | +287% | 2/5 short-term, 1/3 long-term |  | 0.67 |
| [DDOG](https://easycompare.io/research/ddog): Datadog, Inc. | +64.1% | +198% | +61.4% | — | 2/5 short-term, 1/3 long-term |  | 0.45 |
| [NET](https://easycompare.io/research/net): Cloudflare, Inc. | +36.8% | +391% | +66.1% | — | 1/5 short-term, 1/3 long-term |  | 0.49 |
| OKTA: Okta, Inc. | +120% | +157% | −24.3% | — | 5/5 short-term, 0/3 long-term |  | 0.21 |
| QLYS: Qualys, Inc. | +49.2% | +22.3% | +65.9% | +412% | 3/5 short-term, 0/3 long-term |  | 0.45 |
| RPD: Rapid7, Inc. | −29.6% | −73.4% | −89.4% | −12.2% | 3/5 short-term, 0/3 long-term |  | -0.48 |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | +3.8% | +66.6% | +80.3% | +946% | 2/5 short-term, 0/3 long-term |  | 0.56 |
| [AMZN](https://easycompare.io/research/amzn): Amazon.com, Inc. | +21.3% | +110% | +53.8% | +548% | 2/5 short-term, 0/3 long-term |  | 0.42 |
| VRNS: Varonis Systems, Inc. | −21.8% | +51.1% | −23.3% | +412% | 2/5 short-term, 0/3 long-term |  | 0.20 |
| CHKP: Check Point Software Technologies Ltd. | −27.1% | +4.6% | +14.8% | +82.7% | 2/5 short-term, 0/3 long-term |  | 0.24 |
| OSPN: OneSpan Inc. | +22.7% | +115% | −5.9% | +31.6% | 2/5 short-term, 0/3 long-term |  | 0.22 |
| S: SentinelOne, Inc. | +28.4% | +37.7% | −64.8% | — | 2/5 short-term, 0/3 long-term |  | -0.01 |
| TENB: Tenable Holdings, Inc. | +31.0% | −8.7% | −24.0% | — | 2/5 short-term, 0/3 long-term |  | 0.12 |
| ZS: Zscaler, Inc. | −29.9% | +32.3% | −27.9% | — | 2/5 short-term, 0/3 long-term |  | 0.18 |
| [GOOG](https://easycompare.io/research/goog): Alphabet Inc. | +31.2% | +148% | +138% | +752% | 1/5 short-term, 0/3 long-term |  | 0.71 |
| [CSCO](https://easycompare.io/research/csco): Cisco Systems, Inc. | +53.8% | +118% | +118% | +374% | 1/5 short-term, 0/3 long-term |  | 0.73 |
| RDWR: Radware Ltd. | +14.4% | +84.0% | −16.3% | +136% | 1/5 short-term, 0/3 long-term |  | 0.10 |
| GEN: Gen Digital Inc. | −8.1% | +48.7% | +2.2% | +107% | 0/5 short-term, 0/3 long-term |  | 0.18 |
| AKAM: Akamai Technologies, Inc. | +20.7% | −13.8% | −17.1% | +58.0% | 0/5 short-term, 0/3 long-term |  | 0.10 |

### How did PANW do year by year?

This table shows each investment's total return in every full calendar year since 2013, along with where PANW ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, PANW finished in the top quarter in six of 13 years and in the bottom quarter in one. In 2025, it ranked 11 of 22.
- PANW finished ahead of the S&P 500 in six of its 13 full calendar years, and behind it in each of the last two.
- Among its popular alternatives, CRWD came out ahead of PANW most often, in four of the six years both traded.

| Year | PANW | SPY |
| --- | --- | --- |
| 2025 | +1.2% | +17.7% |
| 2024 | +23.4% | +24.9% |
| 2023 | +111% | +26.2% |
| 2022 | −24.8% | −18.2% |
| 2021 | +56.7% | +28.7% |
| 2020 | +53.7% | +18.3% |
| 2019 | +22.8% | +31.2% |
| 2018 | +29.9% | −4.6% |
| 2017 | +15.9% | +21.7% |
| 2016 | −29.0% | +12.0% |

## Risk and diversification

How PANW has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were PANW's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of PANW's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: PANW fell 45.2% from July 2015 to April 2017, while the S&P 500 rose 15.9%.
- The longest climb back to a previous high took 13 months, after PANW fell 45.2% from July 2015 to April 2017.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −48.0% | February 27, 2019 | March 18, 2020 | July 31, 2020 | −12.4% | Covid crash |
| −45.2% | July 23, 2015 | April 5, 2017 | May 7, 2018 | +15.9% | 2015 China and oil sell-off |
| −44.9% | September 10, 2012 | June 24, 2013 | February 13, 2014 | +11.9% |  |
| −36.0% | October 28, 2025 | February 24, 2026 | May 13, 2026 | +0.3% |  |
| −36.0% | April 13, 2022 | January 10, 2023 | May 26, 2023 | −10.7% | 2022 bear market |

### How did PANW do in stock market crashes?

This section measures how far PANW, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- PANW fell further than the S&P 500 in four of the six crashes it has traded through. The clearest case was the 2015 China and oil sell-off, when PANW fell 40.2% and the S&P 500 fell 12.8%.
- Among its popular alternatives, CHKP held up best, falling less than PANW in four of the six crashes they both traded through.
- PANW began trading after the 2008 financial crisis, but ten of its popular alternatives lived through it. The mildest fall among them was CHKP's 34.4%, against 55.2% for the S&P 500.

| Crash | Dates | PANW fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | not trading | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | not trading | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | not trading | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | not trading | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −40.2% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −3.3% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −29.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −46.8% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −30.6% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −2.1% | −3.4% |

### How closely does PANW move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- None of the 14 popular alternatives with the same record had a higher capture ratio (upside capture divided by downside capture) than PANW's 2.44.
- Over the past 10 years, PANW captured 118% of the S&P 500's gains in rising months and 49% of its losses in falling months, with a beta of 1.14. Its share of the market's gains was larger than its share of the losses.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| PANW: Palo Alto Networks, Inc. (this page) | 118% | 49.0% | 1.14 |
| [FTNT](https://easycompare.io/research/ftnt): Fortinet, Inc. | 159% | 92.0% | 1.09 |
| FFIV: F5, Inc. | 87.0% | 84.0% | 1.04 |
| QLYS: Qualys, Inc. | 81.0% | 51.0% | 0.63 |
| RPD: Rapid7, Inc. | 81.0% | 182% | 1.20 |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | 127% | 91.0% | 0.96 |
| [AMZN](https://easycompare.io/research/amzn): Amazon.com, Inc. | 134% | 139% | 1.31 |
| VRNS: Varonis Systems, Inc. | 99.0% | 89.0% | 1.00 |
| CHKP: Check Point Software Technologies Ltd. | 59.0% | 83.0% | 0.58 |
| OSPN: OneSpan Inc. | 102% | 191% | 1.10 |
| [GOOG](https://easycompare.io/research/goog): Alphabet Inc. | 132% | 110% | 1.12 |
| [CSCO](https://easycompare.io/research/csco): Cisco Systems, Inc. | 101% | 96.0% | 0.97 |
| RDWR: Radware Ltd. | 80.0% | 104% | 0.88 |
| GEN: Gen Digital Inc. | 87.0% | 129% | 0.99 |
| AKAM: Akamai Technologies, Inc. | 57.0% | 66.0% | 0.55 |

### What diversifies PANW?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in PANW into MCK would have cut the portfolio's volatility by 20% over the past 5 years and raised its annual return (+37.9% for PANW alone, +39.5% for the mix).
- EMLP made money in two of the two calendar years in which PANW lost money.
- Among large ETFs, LVHI, DXJ and EMLP have moved largely independently of PANW over the past 5 years, with correlations of 0.16 or lower, and each still earned a positive 5-year return.

| Investment | Correlation with PANW | 5Y return | Volatility | Sharpe | Rose in PANW's 2 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | -0.17 | +119% | 11.1% | 1.48 | 1 of 2 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.16 | +225% | 19.1% | 1.34 | 2 of 2 |
| EMLP: First Trust North American Energy Infrastructure Fund | -0.09 | +101% | 14.5% | 1.04 | 2 of 2 |
| HDV: iShares Core High Dividend ETF | -0.07 | +83.3% | 13.0% | 1.00 | 2 of 2 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.43 | +323% | 36.9% | 0.97 | 1 of 2 |
| DBEF: Xtrackers MSCI EAFE Hedged Equity ETF | 0.18 | +85.0% | 13.8% | 0.96 | 1 of 2 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | -0.20 | +126% | 18.9% | 0.96 | 1 of 2 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.37 | +136% | 20.8% | 0.93 | 1 of 2 |

## Common questions

### What was PANW's worst drawdown?

PANW's deepest decline since it began trading in 2012 was 48.0%, from February 2019 to March 2020. It took four months from the low to climb back to its old high. Because PANW launched in July 2012, that record does not include the dot-com bust, the 2008 financial crisis or two other sell-offs.

### What were PANW's best and worst years?

Over 13 full calendar years, PANW's best year was 2014, when it returned 113%. Its worst was 2016, with a return of -29.0%.

### Is there a better investment than PANW?

Among PANW's popular alternatives, FTNT was ahead of PANW in most short and long periods. Looking beyond its popular alternatives, SMH (semiconductors) earned more than PANW with less volatility over the past 5 years: 33.4% a year at 36.9% volatility, against 31.9% a year at 43.4%.

### Is PANW more volatile than the S&P 500?

Yes. PANW's volatility over the past 5 years was 43.4%, 2.5 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, PANW's return lands within 43.4% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is PANW's Sharpe ratio?

PANW's Sharpe ratio over the past 5 years was 0.86, against 0.79 for the S&P 500, so PANW earned more for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is PANW with the S&P 500?

Over the past 5 years, PANW's monthly returns had a correlation of 0.35 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They are only loosely linked, which makes it a real diversifier next to an index fund. In the table, the correlation column measures each option against PANW instead: the lower it is, the more that option would diversify a PANW holding.

### What are the best alternatives to PANW?

Of the 21 popular alternatives we compared, one outperformed PANW in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: FTNT.

### Did PANW outperform the S&P 500?

PANW finished ahead of the S&P 500 (SPY) in six of 13 full calendar years. In 2025, it returned +1.2%, against +17.7% for the index.

### How did PANW do in stock market crashes?

PANW fell less than the S&P 500 (SPY) in two of the six major crashes it has traded through, and further in four. The clearest case was the 2015 China and oil sell-off, when PANW fell 40.2% and the S&P 500 fell 12.8%.

### What diversifies PANW?

These had a low correlation with PANW over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation -0.17), DXJ (correlation 0.16) and EMLP (correlation -0.09); among large stocks, CAH (correlation 0.25), CLS (correlation 0.10) and FIX (correlation 0.01). A correlation near zero means the two have moved largely independently.

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## Explore further

- Full page with charts: https://easycompare.io/research/panw
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against PANW live: https://betterthanspy.com/?b=PANW&utm_source=easycompare&utm_medium=research