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Palo Alto Networks (PANW) Ascends While Market Falls: Some Facts to Note
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Palo Alto Networks (PANW - Free Report) closed the latest trading day at $369.40, indicating a +1.8% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the security software maker had gained 6.17% over the past month. This has lagged the Computer and Technology sector's gain of 9.62% and outpaced the S&P 500's gain of 5.94% in that time.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company's upcoming EPS is projected at $1.48, signifying a 7.25% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 12.76% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.26 per share and revenue of $9.13 billion, indicating changes of +10.41% and +13.74%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.49% higher. Palo Alto Networks currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 57.96. This expresses a premium compared to the average Forward P/E of 31.19 of its industry.
One should further note that PANW currently holds a PEG ratio of 3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 2.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Palo Alto Networks (PANW) Ascends While Market Falls: Some Facts to Note
Palo Alto Networks (PANW - Free Report) closed the latest trading day at $369.40, indicating a +1.8% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the security software maker had gained 6.17% over the past month. This has lagged the Computer and Technology sector's gain of 9.62% and outpaced the S&P 500's gain of 5.94% in that time.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company's upcoming EPS is projected at $1.48, signifying a 7.25% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 12.76% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.26 per share and revenue of $9.13 billion, indicating changes of +10.41% and +13.74%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.49% higher. Palo Alto Networks currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 57.96. This expresses a premium compared to the average Forward P/E of 31.19 of its industry.
One should further note that PANW currently holds a PEG ratio of 3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 2.03 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.