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Palo Alto Networks (PANW) Stock Sinks As Market Gains: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $136.60, moving -0.08% from the previous trading session. This move lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Heading into today, shares of the security software maker had lost 14.68% over the past month, lagging the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 1% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Palo Alto Networks to post earnings of $0.78 per share. This would mark year-over-year growth of 34.48%. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, up 25.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $6.88 billion. These totals would mark changes of +36.11% and +25.12%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 39.88. Its industry sports an average Forward P/E of 27.05, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.
Also, we should mention that PANW has a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Palo Alto Networks (PANW) Stock Sinks As Market Gains: What You Should Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $136.60, moving -0.08% from the previous trading session. This move lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Heading into today, shares of the security software maker had lost 14.68% over the past month, lagging the Computer and Technology sector's loss of 0.17% and the S&P 500's gain of 1% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Palo Alto Networks to post earnings of $0.78 per share. This would mark year-over-year growth of 34.48%. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, up 25.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $6.88 billion. These totals would mark changes of +36.11% and +25.12%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 39.88. Its industry sports an average Forward P/E of 27.05, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.
Also, we should mention that PANW has a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.