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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 $261.74 in the latest trading session, marking a +0.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Shares of the security software maker have appreciated by 9.02% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. On that day, Palo Alto Networks is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 39.76%. In the meantime, our current consensus estimate forecasts the revenue to be $1.84 billion, indicating a 17.8% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.34 per share and revenue of $8.18 billion, indicating changes of +20.27% and +18.65%, respectively, compared to the previous year.
Investors should also note any 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Palo Alto Networks possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 49.02. This signifies a premium in comparison to the average Forward P/E of 36.85 for its industry.
We can also see that PANW currently has a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Palo Alto Networks (PANW) Gains As Market Dips: What You Should Know
Palo Alto Networks (PANW - Free Report) closed at $261.74 in the latest trading session, marking a +0.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Shares of the security software maker have appreciated by 9.02% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. On that day, Palo Alto Networks is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 39.76%. In the meantime, our current consensus estimate forecasts the revenue to be $1.84 billion, indicating a 17.8% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.34 per share and revenue of $8.18 billion, indicating changes of +20.27% and +18.65%, respectively, compared to the previous year.
Investors should also note any 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Palo Alto Networks possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 49.02. This signifies a premium in comparison to the average Forward P/E of 36.85 for its industry.
We can also see that PANW currently has a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.