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Palo Alto Networks (PANW) Dips More Than Broader Market: What You Should Know
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Palo Alto Networks (PANW - Free Report) ended the recent trading session at $184.20, demonstrating a -1.42% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
The stock of security software maker has fallen by 1.6% in the past month, lagging the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is expected to report EPS of $0.93, up 14.81% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.58 billion, indicating a 14.34% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.84 per share and revenue of $10.52 billion. These totals would mark changes of +14.97% and +14.06%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.57% decrease. As of now, Palo Alto Networks holds a Zacks Rank of #3 (Hold).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 48.66. For comparison, its industry has an average Forward P/E of 54.29, which means Palo Alto Networks is trading at a discount to the group.
It is also worth noting that PANW currently has a PEG ratio of 2.41. 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. Security stocks are, on average, holding a PEG ratio of 2.65 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.
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Palo Alto Networks (PANW) Dips More Than Broader Market: What You Should Know
Palo Alto Networks (PANW - Free Report) ended the recent trading session at $184.20, demonstrating a -1.42% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.74%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.76%.
The stock of security software maker has fallen by 1.6% in the past month, lagging the Computer and Technology sector's gain of 0.14% and the S&P 500's gain of 0.79%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is expected to report EPS of $0.93, up 14.81% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.58 billion, indicating a 14.34% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.84 per share and revenue of $10.52 billion. These totals would mark changes of +14.97% and +14.06%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.57% decrease. As of now, Palo Alto Networks holds a Zacks Rank of #3 (Hold).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 48.66. For comparison, its industry has an average Forward P/E of 54.29, which means Palo Alto Networks is trading at a discount to the group.
It is also worth noting that PANW currently has a PEG ratio of 2.41. 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. Security stocks are, on average, holding a PEG ratio of 2.65 based on yesterday's closing prices.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.