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Palo Alto Networks (PANW) Gains As Market Dips: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $622.51, moving +1.1% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the security software maker had gained 5.79% in the past month. In that same time, the Computer and Technology sector gained 4.23%, while the S&P 500 gained 5.37%.
Wall Street will be looking for positivity from Palo Alto Networks as it approaches its next earnings report date. On that day, Palo Alto Networks is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 20.29%. Meanwhile, our latest consensus estimate is calling for revenue of $1.36 billion, up 26.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.27 per share and revenue of $5.46 billion. These totals would mark changes of +18.4% and +28.21%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.58% lower. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 84.69. This valuation marks a premium compared to its industry's average Forward P/E of 59.23.
It is also worth noting that PANW currently has a PEG ratio of 2.89. 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. Security stocks are, on average, holding a PEG ratio of 3.31 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Palo Alto Networks (PANW) Gains As Market Dips: What You Should Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $622.51, moving +1.1% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the security software maker had gained 5.79% in the past month. In that same time, the Computer and Technology sector gained 4.23%, while the S&P 500 gained 5.37%.
Wall Street will be looking for positivity from Palo Alto Networks as it approaches its next earnings report date. On that day, Palo Alto Networks is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 20.29%. Meanwhile, our latest consensus estimate is calling for revenue of $1.36 billion, up 26.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.27 per share and revenue of $5.46 billion. These totals would mark changes of +18.4% and +28.21%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.58% lower. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 84.69. This valuation marks a premium compared to its industry's average Forward P/E of 59.23.
It is also worth noting that PANW currently has a PEG ratio of 2.89. 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. Security stocks are, on average, holding a PEG ratio of 3.31 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.