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Palo Alto Networks (PANW) Registers a Bigger Fall Than the Market: Important Facts to Note
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Palo Alto Networks (PANW - Free Report) closed at $193.84 in the latest trading session, marking a -5.21% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. Meanwhile, the Dow experienced a drop of 0.46%, and the technology-dominated Nasdaq saw a decrease of 0.38%.
The security software maker's stock has dropped by 0.07% in the past month, falling short of the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 3.64%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. On that day, Palo Alto Networks is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 17.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.5 billion, indicating a 14.17% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.27 per share and revenue of $9.19 billion, indicating changes of +15.14% and +14.42%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Palo Alto Networks is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 62.46 right now. This valuation marks a discount compared to its industry average Forward P/E of 76.62.
One should further note that PANW currently holds a PEG ratio of 3.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security industry had an average PEG ratio of 3.15 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 13% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Registers a Bigger Fall Than the Market: Important Facts to Note
Palo Alto Networks (PANW - Free Report) closed at $193.84 in the latest trading session, marking a -5.21% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. Meanwhile, the Dow experienced a drop of 0.46%, and the technology-dominated Nasdaq saw a decrease of 0.38%.
The security software maker's stock has dropped by 0.07% in the past month, falling short of the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 3.64%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. On that day, Palo Alto Networks is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 17.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.5 billion, indicating a 14.17% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.27 per share and revenue of $9.19 billion, indicating changes of +15.14% and +14.42%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Palo Alto Networks is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 62.46 right now. This valuation marks a discount compared to its industry average Forward P/E of 76.62.
One should further note that PANW currently holds a PEG ratio of 3.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Security industry had an average PEG ratio of 3.15 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 13% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.