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Palo Alto Networks (PANW) Outpaces Stock Market Gains: What You Should Know

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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $216.54, moving +2% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.54% for the day. At the same time, the Dow added 0.81%, and the tech-heavy Nasdaq gained 2.27%.

Shares of the security software maker witnessed a gain of 1.79% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.22%, and the S&P 500's gain of 0.29%.

Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company plans to announce its earnings on November 19, 2025. The company's upcoming EPS is projected at $0.89, signifying a 14.10% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.46 billion, up 15.08% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and a revenue of $10.42 billion, representing changes of +13.47% and +17.45%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Palo Alto Networks holds a Zacks Rank of #2 (Buy).

Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 56.08. This expresses a discount compared to the average Forward P/E of 71.72 of its industry.

Meanwhile, PANW's PEG ratio is currently 2.84. 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. The Security was holding an average PEG ratio of 2.76 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 38% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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