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Palo Alto Networks (PANW) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest market close, Palo Alto Networks (PANW - Free Report) reached $269.54, with a -1.41% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
The security software maker's stock has dropped by 6.09% in the past month, falling short of the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is forecasted to report an EPS of $1.26, showcasing a 14.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, up 14.3% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $8 billion, which would represent changes of +23.65% and +16.07%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% lower. As of now, Palo Alto Networks holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 49.76. This indicates a premium in contrast to its industry's Forward P/E of 28.95.
Also, we should mention that PANW has a PEG ratio of 1.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PANW's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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) Stock Drops Despite Market Gains: Important Facts to Note
In the latest market close, Palo Alto Networks (PANW - Free Report) reached $269.54, with a -1.41% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw an increase of 0.23%.
The security software maker's stock has dropped by 6.09% in the past month, falling short of the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.5%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is forecasted to report an EPS of $1.26, showcasing a 14.55% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, up 14.3% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $8 billion, which would represent changes of +23.65% and +16.07%, respectively, from the prior 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.23% lower. As of now, Palo Alto Networks holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 49.76. This indicates a premium in contrast to its industry's Forward P/E of 28.95.
Also, we should mention that PANW has a PEG ratio of 1.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PANW's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.