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Palo Alto (PANW) Selected to Secure 5G Network for DISH

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Palo Alto Networks (PANW - Free Report) recently partnered with DISH Network Corporation (DISH - Free Report) to secure the first cloud-native, OpenRAN-based 5G wireless network of the United States. Palo Alto will provide container security and secure network slicing. Apart from this, real-time threat correlation and dynamic security deployment will also be taken care of by the company.

Moreover, Palo Alto’s offerings, including the VM-series and CN-series Next-Generation Firewalls, and Prisma Cloud, will be leveraged by DISH to provide end-to-end security to its 5G network.

5G networks are poised to play a crucial role in the digital transformation of businesses. As 5G deployments start rolling out, it is becoming increasingly important to secure the network in order to provide more than just fast Internet browsing speeds. Notably, the 5G security market is gaining traction due to increasing security concerns in the 5G networks, rising ransomware attacks on IoT devices and critical infrastructure, and increasing use of IoT connections.

Markedly, when strong security is integrated with 5G connectivity, it can offer vast solutions, including smart supply chains, smart manufacturing and accelerated autonomous transportation. Secure 5G connectivity will also enable mass adoption of IoT.

Per the latest data from IDC, 5G smartphone shipments are expected to account for more than 40% of global volumes in 2021 and subsequently grow to 69% in 2025. Moreover, per MarketsandMarkets, the global 5G security market size is projected to grow from $580 million in 2020 to $5,226 million by 2026, at a CAGR of 44.3%.

Palo Alto’s strong suite of cloud-native security solutions is gaining solid traction among network providers like Telefonica (TEF - Free Report) . Moreover, in November last year, it launched the industry’s first 5G-native security offering, which enables service providers and enterprises to turn 5G networks into highly secure networks.

The promising market projections, efforts in the 5G security space and growing popularity among communication service providers bode well for Palo Alto.

Zacks Rank & A Stock to Consider

Palo Alto currently carries a Zacks Rank #4 (Sell).

A better-ranked stock in the broader technology sector is Ubiquiti Inc. (UI - Free Report) , sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Ubiquiti is currently pegged at 32.94%.

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