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Palo Alto Networks (PANW) Stock Sinks As Market Gains: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $134.19, moving -0.66% from the previous trading session. This move lagged the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.
Coming into today, shares of the security software maker had lost 16.5% in the past month. In that same time, the Computer and Technology sector lost 2.78%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from Palo Alto Networks as it approaches its next earnings report date. The company is expected to report EPS of $0.78, up 34.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, up 25.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $6.88 billion. These totals would mark changes of +36.11% and +25.12%, respectively, from last year.
Investors should also note any 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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Palo Alto Networks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 39.4 right now. Its industry sports an average Forward P/E of 26.74, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.
Meanwhile, PANW's PEG ratio is currently 1.25. 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. PANW's industry had an average PEG ratio of 2.07 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
View the Zacks #1 Rank List
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Palo Alto Networks (PANW) Stock Sinks As Market Gains: What You Should Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $134.19, moving -0.66% from the previous trading session. This move lagged the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 7.5%.
Coming into today, shares of the security software maker had lost 16.5% in the past month. In that same time, the Computer and Technology sector lost 2.78%, while the S&P 500 lost 0.94%.
Wall Street will be looking for positivity from Palo Alto Networks as it approaches its next earnings report date. The company is expected to report EPS of $0.78, up 34.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, up 25.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.43 per share and revenue of $6.88 billion. These totals would mark changes of +36.11% and +25.12%, respectively, from last year.
Investors should also note any 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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Palo Alto Networks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 39.4 right now. Its industry sports an average Forward P/E of 26.74, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.
Meanwhile, PANW's PEG ratio is currently 1.25. 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. PANW's industry had an average PEG ratio of 2.07 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.