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Palo Alto Networks (PANW) Beats Stock Market Upswing: What Investors Need to Know
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The latest trading session saw Palo Alto Networks (PANW - Free Report) ending at $275.62, denoting a +1.28% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.
Coming into today, shares of the security software maker had lost 4.59% in the past month. In that same time, the Computer and Technology sector lost 0.55%, while the S&P 500 lost 0.9%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is predicted to post an EPS of $1.26, indicating a 14.55% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, up 14.3% from the year-ago period.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $5.49 per share and revenue of $8 billion. These results would represent year-over-year changes of +23.65% and +16.07%, respectively.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Palo Alto Networks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 49.54 right now. This signifies a premium in comparison to the average Forward P/E of 27.33 for its industry.
It is also worth noting that PANW currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.79.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.
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Palo Alto Networks (PANW) Beats Stock Market Upswing: What Investors Need to Know
The latest trading session saw Palo Alto Networks (PANW - Free Report) ending at $275.62, denoting a +1.28% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.
Coming into today, shares of the security software maker had lost 4.59% in the past month. In that same time, the Computer and Technology sector lost 0.55%, while the S&P 500 lost 0.9%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is predicted to post an EPS of $1.26, indicating a 14.55% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.97 billion, up 14.3% from the year-ago period.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $5.49 per share and revenue of $8 billion. These results would represent year-over-year changes of +23.65% and +16.07%, respectively.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Palo Alto Networks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 49.54 right now. This signifies a premium in comparison to the average Forward P/E of 27.33 for its industry.
It is also worth noting that PANW currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.79.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.