Investors have seen some respite early this week from the tough market conditions that have prevailed throughout much of 2022 thus far. However, the Nasdaq Composite (^IXIC -0.64%) turned lower on Wednesday, trading down more than three-quarters of a percent as of 1:30 p.m. ET. Overall, the market community is still struggling with all the uncertainty prevailing across financial markets, including not only stocks but also bonds, commodities, and real estate.
Yet even with all the potential headwinds facing the market, some Nasdaq stocks are still hitting all-time highs. Among the companies setting new stock-price highs throughout their histories, Palo Alto Networks (PANW -1.71%) and Amphastar Pharmaceuticals (AMPH -0.41%) stood out from the relatively small crowd. Below, we'll take a closer look at those stocks to see what's happening with the companies.
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Palo Alto rises on cybersecurity threats
Shares of Palo Alto Networks were higher by 1.5% early Wednesday afternoon on a down day for Wall Street, bringing its gain over the past year to 87%. The cybersecurity specialist has gotten a lot of attention lately, due in large part to the specific geopolitical threats of cyberwarfare that the Russian invasion of Ukraine poses.
Palo Alto has done a good job of publicizing the need for better cybersecurity. In a release earlier this week, the company highlighted the fact that even though the vast majority of state and local government entities understand that breaches from ransomware are a significant and ongoing threat, fewer than half have a ransomware incident response plan in place in the event of such an attack.
Palo Alto has positioned itself to be the provider of choice for cybersecurity services, and it has seen significant adoption of its platform. Revenue has more than doubled since fiscal 2018, including a 30% rise year over year in its most recent quarterly report. Adjusted net income showed modest growth, and Palo Alto gave guidance for growth rates of 25% to 26% for sales along with earnings expectations of $7.23 to $7.30 per share for the full fiscal year.
There's plenty of competition in the cybersecurity stock space, and Palo Alto isn't the only successful company providing these valuable services. Nevertheless, it's done a better job than many of seeing its stock price hold up in the recent downturn, and it's still in good position to benefit as cybersecurity returns to the spotlight.
Amphastar keeps looking healthier
Amphastar has seen its stock rise 54% just since the beginning of 2022, and the shares added another 1% on Wednesday. The biopharmaceutical company has seen great success with its intranasal, inhalation, and injectable products, and investors are responding to solid results.
The company's fourth-quarter and full-year financial results released earlier this month show the tone of Amphastar's business lately. Revenue was up 26% year over year for the quarter, finishing a year with 25% sales growth. Adjusted earnings more than doubled for both periods, coming in at $0.42 per share for the fourth quarter and $1.37 per share for 2021.
Amphastar's biggest revenue bump came from sales of Primatene Mist and epinephrine, which posted 60% and 152% gains respectively. The company attributed Primatene's surge to a strong advertising campaign, while a new multi-dose vial helped bolster epinephrine sales. In addition, the introduction of the injection emergency kit treatment Glucagon provided a valuable new source of sales for the company.
Looking ahead, Amphastar has five abbreviated new drug applications before the U.S. Food and Drug Administration to serve markets worth $4 billion, as well as a host of biosimilar and generic products in development targeting another $25 billion in market opportunities. Investors have high hopes that Amphastar can keep up its momentum, and the stock is reflecting that potential.
