We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Palo Alto Networks (PANW) Stock Declines While Market Improves: Some Information for Investors
Read MoreHide Full Article
In the latest close session, Palo Alto Networks (PANW - Free Report) was down 1.22% at $179.32. This change lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
Shares of the security software maker have appreciated by 12.99% over the course of the past month, underperforming the Computer and Technology sector's gain of 20.71%, and outperforming the S&P 500's gain of 12.23%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. 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%. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.7 per share and a revenue of $11.25 billion, representing changes of +10.78% and +22%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Palo Alto Networks is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 49.03 right now. Its industry sports an average Forward P/E of 33.46, so one might conclude that Palo Alto Networks is trading at a premium comparatively.
Also, we should mention that PANW has a PEG ratio of 3.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. 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. This group has a Zacks Industry Rank of 205, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Palo Alto Networks (PANW) Stock Declines While Market Improves: Some Information for Investors
In the latest close session, Palo Alto Networks (PANW - Free Report) was down 1.22% at $179.32. This change lagged the S&P 500's daily gain of 1.02%. At the same time, the Dow added 1.62%, and the tech-heavy Nasdaq gained 0.89%.
Shares of the security software maker have appreciated by 12.99% over the course of the past month, underperforming the Computer and Technology sector's gain of 20.71%, and outperforming the S&P 500's gain of 12.23%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. 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%. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.7 per share and a revenue of $11.25 billion, representing changes of +10.78% and +22%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Palo Alto Networks is carrying a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 49.03 right now. Its industry sports an average Forward P/E of 33.46, so one might conclude that Palo Alto Networks is trading at a premium comparatively.
Also, we should mention that PANW has a PEG ratio of 3.78. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. 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. This group has a Zacks Industry Rank of 205, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.