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Here's Why Palo Alto Networks (PANW) Gained But Lagged the Market Today
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The most recent trading session ended with Palo Alto Networks (PANW - Free Report) standing at $278.35, reflecting a +0.23% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.87%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 1.11%.
Coming into today, shares of the security software maker had lost 3.16% in the past month. In that same time, the Computer and Technology sector lost 5.98%, while the S&P 500 lost 3.97%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company is expected to report EPS of $1.26, up 14.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.97 billion, up 14.3% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.49 per share and a revenue of $8 billion, demonstrating changes of +23.65% and +16.07%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed an unchanged state. Right now, Palo Alto Networks possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 50.55. This denotes a premium relative to the industry's average Forward P/E of 27.89.
One should further note that PANW currently holds a PEG ratio of 1.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 54, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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Here's Why Palo Alto Networks (PANW) Gained But Lagged the Market Today
The most recent trading session ended with Palo Alto Networks (PANW - Free Report) standing at $278.35, reflecting a +0.23% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.87%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 1.11%.
Coming into today, shares of the security software maker had lost 3.16% in the past month. In that same time, the Computer and Technology sector lost 5.98%, while the S&P 500 lost 3.97%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company is expected to report EPS of $1.26, up 14.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.97 billion, up 14.3% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.49 per share and a revenue of $8 billion, demonstrating changes of +23.65% and +16.07%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 witnessed an unchanged state. Right now, Palo Alto Networks possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 50.55. This denotes a premium relative to the industry's average Forward P/E of 27.89.
One should further note that PANW currently holds a PEG ratio of 1.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 54, finds itself in the top 22% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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.