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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 $228.51 in the latest trading session, marking a +0.47% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the security software maker had 0% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 1.43% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Palo Alto Networks to post earnings of $1.16 per share. This would mark year-over-year growth of 39.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.84 billion, up 17.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $8.18 billion. These totals would mark changes of +20.27% and +18.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 2.48% higher. Palo Alto Networks currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 42.63. For comparison, its industry has an average Forward P/E of 36.51, which means Palo Alto Networks is trading at a premium to the group.
It is also worth noting that PANW currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
You can find more information on all of these metrics, and much 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 at $228.51 in the latest trading session, marking a +0.47% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the security software maker had 0% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 1.43% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Palo Alto Networks to post earnings of $1.16 per share. This would mark year-over-year growth of 39.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.84 billion, up 17.8% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.34 per share and revenue of $8.18 billion. These totals would mark changes of +20.27% and +18.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 2.48% higher. Palo Alto Networks currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 42.63. For comparison, its industry has an average Forward P/E of 36.51, which means Palo Alto Networks is trading at a premium to the group.
It is also worth noting that PANW currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.56 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.