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Palo Alto Networks (PANW) Outpaces Stock Market Gains: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $192.62, moving +0.36% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 2.19%.
Coming into today, shares of the security software maker had gained 3.35% in the past month. In that same time, the Computer and Technology sector gained 7.7%, while the S&P 500 gained 3.13%.
Investors will be hoping for strength from Palo Alto Networks as it approaches its next earnings release. On that day, Palo Alto Networks is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 53.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.71 billion, up 23.65% from the prior-year quarter.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $4.01 per share and revenue of $6.89 billion. These results would represent year-over-year changes of +59.13% and +25.18%, respectively.
Investors should also note any recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.42% higher. Palo Alto Networks currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 47.87 right now. Its industry sports an average Forward P/E of 30.61, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.
Investors should also note that PANW has a PEG ratio of 1.52 right now. 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 industry currently had an average PEG ratio of 2.43 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Palo Alto Networks (PANW) Outpaces Stock Market Gains: What You Should Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $192.62, moving +0.36% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq lost 2.19%.
Coming into today, shares of the security software maker had gained 3.35% in the past month. In that same time, the Computer and Technology sector gained 7.7%, while the S&P 500 gained 3.13%.
Investors will be hoping for strength from Palo Alto Networks as it approaches its next earnings release. On that day, Palo Alto Networks is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 53.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.71 billion, up 23.65% from the prior-year quarter.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $4.01 per share and revenue of $6.89 billion. These results would represent year-over-year changes of +59.13% and +25.18%, respectively.
Investors should also note any recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.42% higher. Palo Alto Networks currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 47.87 right now. Its industry sports an average Forward P/E of 30.61, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.
Investors should also note that PANW has a PEG ratio of 1.52 right now. 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 industry currently had an average PEG ratio of 2.43 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.