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Palo Alto Networks (PANW) Stock Moves -1.99%: What You Should Know

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Palo Alto Networks (PANW - Free Report) closed at $491.91 in the latest trading session, marking a -1.99% move from the prior day. This change was narrower than the S&P 500's 2.01% loss on the day. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the security software maker had lost 0.97% over the past month. This has was narrower than the Computer and Technology sector's loss of 4.35% and the S&P 500's loss of 6.08% in that time.

Palo Alto Networks will be looking to display strength as it nears its next earnings release. On that day, Palo Alto Networks is projected to report earnings of $2.28 per share, which would represent year-over-year growth of 42.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.54 billion, up 26.64% from the year-ago period.

PANW's full-year Zacks Consensus Estimates are calling for earnings of $7.45 per share and revenue of $5.5 billion. These results would represent year-over-year changes of +21.34% and +29.11%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Palo Alto Networks is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 67.35. Its industry sports an average Forward P/E of 42.9, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.

It is also worth noting that PANW currently has a PEG ratio of 2.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security was holding an average PEG ratio of 2.78 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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