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Palo Alto Networks (PANW) Falls More Steeply Than Broader Market: What Investors Need to Know
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Palo Alto Networks (PANW - Free Report) closed at $173.21 in the latest trading session, marking a -4.41% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq decreased by 0.89%.
Heading into today, shares of the security software maker had gained 18.26% over the past month, outpacing the Computer and Technology sector's gain of 14.93% and the S&P 500's gain of 9.71%.
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 $0.81, up 1.25% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.94 billion, indicating a 28.58% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.7 per share and a revenue of $11.25 billion, signifying shifts of +10.78% and +22%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 48.94. This valuation marks a premium compared to its industry average Forward P/E of 35.43.
Also, we should mention that PANW has a PEG ratio of 3.77. 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 was holding an average PEG ratio of 2.57 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
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) Falls More Steeply Than Broader Market: What Investors Need to Know
Palo Alto Networks (PANW - Free Report) closed at $173.21 in the latest trading session, marking a -4.41% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.41%. On the other hand, the Dow registered a loss of 0.36%, and the technology-centric Nasdaq decreased by 0.89%.
Heading into today, shares of the security software maker had gained 18.26% over the past month, outpacing the Computer and Technology sector's gain of 14.93% and the S&P 500's gain of 9.71%.
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 $0.81, up 1.25% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.94 billion, indicating a 28.58% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.7 per share and a revenue of $11.25 billion, signifying shifts of +10.78% and +22%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 48.94. This valuation marks a premium compared to its industry average Forward P/E of 35.43.
Also, we should mention that PANW has a PEG ratio of 3.77. 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 was holding an average PEG ratio of 2.57 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
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.