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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 at $493.41 in the latest trading session, marking a +0.17% move from the prior day. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the security software maker had gained 2.27% over the past month. This has outpaced the Computer and Technology sector's loss of 2.03% and the S&P 500's loss of 1.89% in that time.
Investors will be hoping for strength from Palo Alto Networks as it approaches its next earnings release. The company is expected to report EPS of $2.28, up 42.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, up 26.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.45 per share and revenue of $5.5 billion. These totals would mark changes of +21.34% and +29.12%, respectively, from last year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. Palo Alto Networks is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 66.08 right now. For comparison, its industry has an average Forward P/E of 58.6, which means Palo Alto Networks is trading at a premium to the group.
We can also see that PANW currently has a PEG ratio of 2.1. 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. Security stocks are, on average, holding a PEG ratio of 2.79 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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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Palo Alto Networks (PANW) Gains As Market Dips: What You Should Know
Palo Alto Networks (PANW - Free Report) closed at $493.41 in the latest trading session, marking a +0.17% move from the prior day. This move outpaced the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the security software maker had gained 2.27% over the past month. This has outpaced the Computer and Technology sector's loss of 2.03% and the S&P 500's loss of 1.89% in that time.
Investors will be hoping for strength from Palo Alto Networks as it approaches its next earnings release. The company is expected to report EPS of $2.28, up 42.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.54 billion, up 26.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.45 per share and revenue of $5.5 billion. These totals would mark changes of +21.34% and +29.12%, respectively, from last year.
Investors might also notice 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. Palo Alto Networks is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 66.08 right now. For comparison, its industry has an average Forward P/E of 58.6, which means Palo Alto Networks is trading at a premium to the group.
We can also see that PANW currently has a PEG ratio of 2.1. 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. Security stocks are, on average, holding a PEG ratio of 2.79 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.