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Palo Alto Networks (PANW) Stock Drops Despite Market Gains: Important Facts to Note
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Palo Alto Networks (PANW - Free Report) closed at $153.22 in the latest trading session, marking a -2.54% move from the prior day. This move lagged the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq added 0.77%.
The security software maker's shares have seen an increase of 10.97% over the last month, surpassing the Computer and Technology sector's loss of 5% and the S&P 500's loss of 4.71%.
The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.81, marking a 1.25% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.94 billion, indicating a 28.58% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.72 per share and a revenue of $11.2 billion, indicating changes of +11.38% and +21.51%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 42.24. Its industry sports an average Forward P/E of 34.95, so one might conclude that Palo Alto Networks is trading at a premium comparatively.
We can also see that PANW currently has a PEG ratio of 3.25. 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 Security industry had an average PEG ratio of 2.42 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Palo Alto Networks (PANW) Stock Drops Despite Market Gains: Important Facts to Note
Palo Alto Networks (PANW - Free Report) closed at $153.22 in the latest trading session, marking a -2.54% move from the prior day. This move lagged the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq added 0.77%.
The security software maker's shares have seen an increase of 10.97% over the last month, surpassing the Computer and Technology sector's loss of 5% and the S&P 500's loss of 4.71%.
The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.81, marking a 1.25% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.94 billion, indicating a 28.58% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.72 per share and a revenue of $11.2 billion, indicating changes of +11.38% and +21.51%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 42.24. Its industry sports an average Forward P/E of 34.95, so one might conclude that Palo Alto Networks is trading at a premium comparatively.
We can also see that PANW currently has a PEG ratio of 3.25. 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 Security industry had an average PEG ratio of 2.42 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.