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Why the Market Dipped But Palo Alto Networks (PANW) Gained Today
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In the latest market close, Palo Alto Networks (PANW - Free Report) reached $246.17, with a +1.26% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
The the stock of security software maker has risen by 6.38% in the past month, leading the Computer and Technology sector's loss of 2.16% and the S&P 500's loss of 3.95%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming 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%. 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.
Looking at the full year, the 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. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Palo Alto Networks presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Palo Alto Networks is presently trading at a Forward P/E ratio of 45.57. This denotes a premium relative to the industry's average Forward P/E of 35.87.
Meanwhile, PANW's PEG ratio is currently 1.64. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.43.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why the Market Dipped But Palo Alto Networks (PANW) Gained Today
In the latest market close, Palo Alto Networks (PANW - Free Report) reached $246.17, with a +1.26% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
The the stock of security software maker has risen by 6.38% in the past month, leading the Computer and Technology sector's loss of 2.16% and the S&P 500's loss of 3.95%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming 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%. 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.
Looking at the full year, the 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. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Palo Alto Networks presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Palo Alto Networks is presently trading at a Forward P/E ratio of 45.57. This denotes a premium relative to the industry's average Forward P/E of 35.87.
Meanwhile, PANW's PEG ratio is currently 1.64. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.43.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.