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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 the most recent trading day at $183.30, moving +0.46% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 2.14%.
Prior to today's trading, shares of the security software maker had lost 8.65% over the past month. This has lagged the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 5.1% 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 $0.92 per share, which would represent year-over-year growth of 53.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, up 23.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.01 per share and revenue of $6.89 billion. These totals would mark changes of +59.13% and +25.18%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 45.51. For comparison, its industry has an average Forward P/E of 41.43, which means Palo Alto Networks is trading at a premium to the group.
Meanwhile, PANW's PEG ratio is currently 1.44. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Palo Alto Networks (PANW) Gains As Market Dips: What You Should Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $183.30, moving +0.46% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 2.14%.
Prior to today's trading, shares of the security software maker had lost 8.65% over the past month. This has lagged the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 5.1% 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 $0.92 per share, which would represent year-over-year growth of 53.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.71 billion, up 23.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.01 per share and revenue of $6.89 billion. These totals would mark changes of +59.13% and +25.18%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 45.51. For comparison, its industry has an average Forward P/E of 41.43, which means Palo Alto Networks is trading at a premium to the group.
Meanwhile, PANW's PEG ratio is currently 1.44. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.