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Palo Alto Networks (PANW - Free Report) ended the recent trading session at $373.23, demonstrating a -0.32% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 0.28%.
Shares of the security software maker have appreciated by 10.8% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.
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 $1.48, indicating a 7.25% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.12 billion, indicating a 12.81% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.26 per share and a revenue of $9.13 billion, signifying shifts of +10.41% and +13.74%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, 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 past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Palo Alto Networks currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Palo Alto Networks is currently being traded at a Forward P/E ratio of 59.79. Its industry sports an average Forward P/E of 31.87, so one might conclude that Palo Alto Networks is trading at a premium comparatively.
It's also important to note that PANW currently trades at a PEG ratio of 3.09. 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 Internet - Software industry currently had an average PEG ratio of 2.14 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 74, which puts it in the top 30% 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.
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) Stock Sinks As Market Gains: Here's Why
Palo Alto Networks (PANW - Free Report) ended the recent trading session at $373.23, demonstrating a -0.32% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 0.28%.
Shares of the security software maker have appreciated by 10.8% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.
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 $1.48, indicating a 7.25% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.12 billion, indicating a 12.81% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.26 per share and a revenue of $9.13 billion, signifying shifts of +10.41% and +13.74%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, 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 past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Palo Alto Networks currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Palo Alto Networks is currently being traded at a Forward P/E ratio of 59.79. Its industry sports an average Forward P/E of 31.87, so one might conclude that Palo Alto Networks is trading at a premium comparatively.
It's also important to note that PANW currently trades at a PEG ratio of 3.09. 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 Internet - Software industry currently had an average PEG ratio of 2.14 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 74, which puts it in the top 30% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.