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Palo Alto Networks (PANW) Beats Stock Market Upswing: What Investors Need to Know

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In the latest close session, Palo Alto Networks (PANW - Free Report) was up +2.8% at $213.70. This change outpaced the S&P 500's 0.19% gain on the day. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.1%.

The stock of security software maker has risen by 33.49% in the past month, leading the Computer and Technology sector's gain of 19.09% and the S&P 500's gain of 9.13%.

Investors will be eagerly watching for the performance of Palo Alto Networks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 2, 2026. The company's upcoming EPS is projected at $0.81, signifying a 1.25% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.94 billion, up 28.58% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.7 per share and a revenue of $11.25 billion, indicating changes of +10.78% and +22%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been no change in the Zacks Consensus EPS estimate. Palo Alto Networks currently has 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 56.15 right now. This signifies a premium in comparison to the average Forward P/E of 37.96 for its industry.

It is also worth noting that PANW currently has a PEG ratio of 4.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.74.

The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 107, this industry ranks in the top 44% 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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