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Palo Alto Networks (PANW) Gains But Lags Market: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $173.78, moving +2.3% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 2.51%. On the other hand, the Dow registered a gain of 2.85%, and the technology-centric Nasdaq increased by 2.8%.
The security software maker's shares have seen an increase of 2.59% over the last month, surpassing the Computer and Technology sector's loss of 0.84% and the S&P 500's loss of 1.66%.
The upcoming earnings release of Palo Alto Networks will be of great interest to investors. On that day, Palo Alto Networks is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 1.25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.94 billion, up 28.58% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.72 per share and a revenue of $11.2 billion, signifying shifts of +11.38% and +21.51%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 remained stagnant. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Palo Alto Networks is at present trading with a Forward P/E ratio of 45.66. This represents a premium compared to its industry average Forward P/E of 35.63.
We can additionally observe that PANW currently boasts a PEG ratio of 3.52. 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 currently had an average PEG ratio of 2.54 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Palo Alto Networks (PANW) Gains But Lags Market: What You Should Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $173.78, moving +2.3% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 2.51%. On the other hand, the Dow registered a gain of 2.85%, and the technology-centric Nasdaq increased by 2.8%.
The security software maker's shares have seen an increase of 2.59% over the last month, surpassing the Computer and Technology sector's loss of 0.84% and the S&P 500's loss of 1.66%.
The upcoming earnings release of Palo Alto Networks will be of great interest to investors. On that day, Palo Alto Networks is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 1.25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.94 billion, up 28.58% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.72 per share and a revenue of $11.2 billion, signifying shifts of +11.38% and +21.51%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 remained stagnant. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Palo Alto Networks is at present trading with a Forward P/E ratio of 45.66. This represents a premium compared to its industry average Forward P/E of 35.63.
We can additionally observe that PANW currently boasts a PEG ratio of 3.52. 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 currently had an average PEG ratio of 2.54 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.