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Palo Alto Networks (PANW) Dips More Than Broader Markets: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed at $169.28 in the latest trading session, marking a -1.59% move from the prior day. This move lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 6.73%.
Heading into today, shares of the security software maker had gained 22.25% over the past month, outpacing the Computer and Technology sector's gain of 8.12% and the S&P 500's gain of 2.48% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release, which is expected to be February 21, 2023. On that day, Palo Alto Networks is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 34.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.65 billion, up 25.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.42 per share and revenue of $6.89 billion. These totals would mark changes of +35.71% and +25.15%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.26% lower within the past month. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 50.24. This valuation marks a premium compared to its industry's average Forward P/E of 30.23.
It is also worth noting that PANW currently has a PEG ratio of 1.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PANW's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Dips More Than Broader Markets: What You Should Know
Palo Alto Networks (PANW - Free Report) closed at $169.28 in the latest trading session, marking a -1.59% move from the prior day. This move lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 6.73%.
Heading into today, shares of the security software maker had gained 22.25% over the past month, outpacing the Computer and Technology sector's gain of 8.12% and the S&P 500's gain of 2.48% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release, which is expected to be February 21, 2023. On that day, Palo Alto Networks is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 34.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.65 billion, up 25.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.42 per share and revenue of $6.89 billion. These totals would mark changes of +35.71% and +25.15%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.26% lower within the past month. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 50.24. This valuation marks a premium compared to its industry's average Forward P/E of 30.23.
It is also worth noting that PANW currently has a PEG ratio of 1.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PANW's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.