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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 $514.51 in the latest trading session, marking a -1.91% move from the prior day. This change lagged the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.49%.
Heading into today, shares of the security software maker had gained 2.13% over the past month, lagging the Computer and Technology sector's gain of 12.59% and the S&P 500's gain of 11.6% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release, which is expected to be August 22, 2022. In that report, analysts expect Palo Alto Networks to post earnings of $2.28 per share. This would mark year-over-year growth of 42.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.54 billion, up 26.65% from the year-ago period.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Palo Alto Networks is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 56.6. This valuation marks a premium compared to its industry's average Forward P/E of 50.74.
It is also worth noting that PANW currently has a PEG ratio of 1.8. 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. The Security was holding an average PEG ratio of 2.6 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.