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.
Over the last month, however, PANW shares have lagged the S&P 500, up roughly 3% vs. the S&P 500’s 7% gain.
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.
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%.
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.
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.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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.
Over the last month, however, PANW shares have lagged the S&P 500, up roughly 3% vs. the S&P 500’s 7% gain.
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.
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%.
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.
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.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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