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Palo Alto Networks Q1 Preview: Double-Digit Earnings Growth in Store?
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The Zacks Computer and Technology sector has fallen on hard times in 2022 amid a hawkish pivot from the Federal Reserve, down more than 30% and widely underperforming the S&P 500.
A company that many are familiar with, Palo Alto Networks (PANW - Free Report) , is on deck to unveil Q1 earnings on November 17th, after the market close.
Palo Alto Networks offers network security solutions to enterprises, service providers, and government entities worldwide.
Currently, PANW sports a Zacks Rank #2 (Buy) with an overall VGM Score of a C.
How does the company stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
PANW shares have been relatively strong year-to-date, down 12% vs. the S&P 500’s 17% decline.
Image Source: Zacks Investment Research
Over the last month, however, PANW shares have lagged the S&P 500, up roughly 3% vs. the S&P 500’s 7% gain.
Image Source: Zacks Investment Research
The company’s forward price-to-sales ratio sits on the higher end of the spectrum at 7.1X, below its 7.5X five-year median but representing a 143% premium relative to its Zacks sector average.
PANW carries a Value Style Score of a D.
Image Source: Zacks Investment Research
Quarterly Estimates
One analyst has upped their earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $0.68 suggesting a Y/Y uptick in earnings of a strong 23.5%.
Image Source: Zacks Investment Research
The company’s top-line is in rock-solid health also; the Zacks Consensus Sales Estimate of $1.6 billion indicates a 24% improvement from year-ago quarterly sales of roughly $1.3 billion.
Quarterly Performance
PANW is on a blazing-hot earnings streak, exceeding the Zacks Consensus EPS and Sales Estimates in ten consecutive quarters.
Just in its latest release, the company registered a 5.3% EPS beat paired with a 0.4% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
PANW shares have outperformed the general market year-to-date but have modestly lagged over the last month.
The company’s forward price-to-sales ratio is on the higher end of the spectrum, typical of stocks with a high-growth nature.
One analyst has upped their earnings outlook, with estimates suggesting sizable Y/Y upticks in both revenue and earnings.
PANW has been the definition of consistency, chaining together a long streak of exceeding both revenue and earnings estimates.
Heading into the release, Palo Alto Networks (PANW - Free Report) carries a Zacks Rank #2 (Buy) paired with an overall VGM Score of a B.
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Palo Alto Networks Q1 Preview: Double-Digit Earnings Growth in Store?
The Zacks Computer and Technology sector has fallen on hard times in 2022 amid a hawkish pivot from the Federal Reserve, down more than 30% and widely underperforming the S&P 500.
A company that many are familiar with, Palo Alto Networks (PANW - Free Report) , is on deck to unveil Q1 earnings on November 17th, after the market close.
Palo Alto Networks offers network security solutions to enterprises, service providers, and government entities worldwide.
Currently, PANW sports a Zacks Rank #2 (Buy) with an overall VGM Score of a C.
How does the company stack up heading into the print? Let’s take a closer look.
Share Performance & Valuation
PANW shares have been relatively strong year-to-date, down 12% vs. the S&P 500’s 17% decline.
Image Source: Zacks Investment Research
Over the last month, however, PANW shares have lagged the S&P 500, up roughly 3% vs. the S&P 500’s 7% gain.
Image Source: Zacks Investment Research
The company’s forward price-to-sales ratio sits on the higher end of the spectrum at 7.1X, below its 7.5X five-year median but representing a 143% premium relative to its Zacks sector average.
PANW carries a Value Style Score of a D.
Image Source: Zacks Investment Research
Quarterly Estimates
One analyst has upped their earnings outlook over the last several months, with the Zacks Consensus EPS Estimate of $0.68 suggesting a Y/Y uptick in earnings of a strong 23.5%.
Image Source: Zacks Investment Research
The company’s top-line is in rock-solid health also; the Zacks Consensus Sales Estimate of $1.6 billion indicates a 24% improvement from year-ago quarterly sales of roughly $1.3 billion.
Quarterly Performance
PANW is on a blazing-hot earnings streak, exceeding the Zacks Consensus EPS and Sales Estimates in ten consecutive quarters.
Just in its latest release, the company registered a 5.3% EPS beat paired with a 0.4% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
PANW shares have outperformed the general market year-to-date but have modestly lagged over the last month.
The company’s forward price-to-sales ratio is on the higher end of the spectrum, typical of stocks with a high-growth nature.
One analyst has upped their earnings outlook, with estimates suggesting sizable Y/Y upticks in both revenue and earnings.
PANW has been the definition of consistency, chaining together a long streak of exceeding both revenue and earnings estimates.
Heading into the release, Palo Alto Networks (PANW - Free Report) carries a Zacks Rank #2 (Buy) paired with an overall VGM Score of a B.