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Palo Alto Networks (PANW) Laps the Stock Market: Here's Why
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Palo Alto Networks (PANW - Free Report) ended the recent trading session at $325.24, demonstrating a +0.54% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
The security software maker's shares have seen an increase of 7.67% over the last month, surpassing the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is expected to report EPS of $1.30, up 23.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.97 billion, up 19.08% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $8.17 billion, which would represent changes of +23.65% and +18.58%, respectively, from the prior year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Right now, Palo Alto Networks possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Palo Alto Networks is currently being traded at a Forward P/E ratio of 58.94. This expresses a premium compared to the average Forward P/E of 35.54 of its industry.
One should further note that PANW currently holds a PEG ratio of 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.71.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Palo Alto Networks (PANW) Laps the Stock Market: Here's Why
Palo Alto Networks (PANW - Free Report) ended the recent trading session at $325.24, demonstrating a +0.54% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
The security software maker's shares have seen an increase of 7.67% over the last month, surpassing the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is expected to report EPS of $1.30, up 23.81% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.97 billion, up 19.08% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $8.17 billion, which would represent changes of +23.65% and +18.58%, respectively, from the prior year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Right now, Palo Alto Networks possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Palo Alto Networks is currently being traded at a Forward P/E ratio of 58.94. This expresses a premium compared to the average Forward P/E of 35.54 of its industry.
One should further note that PANW currently holds a PEG ratio of 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.71.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.