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Palo Alto Networks (PANW) Advances While Market Declines: Some Information for Investors

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In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $247.86, marking a +2.07% move from the previous day. This change outpaced the S&P 500's 0.07% loss on the day. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq lost 0.51%.

The security software maker's stock has climbed by 44.67% in the past month, exceeding the Computer and Technology sector's gain of 12.26% and the S&P 500's gain of 5.58%.

Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on June 2, 2026. 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. At the same time, our most recent consensus estimate is projecting a revenue of $2.94 billion, reflecting a 28.58% rise from the equivalent quarter last year.

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 note any recent changes to analyst estimates for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Palo Alto Networks holds a Zacks Rank of #4 (Sell).

Looking at valuation, Palo Alto Networks is presently trading at a Forward P/E ratio of 65.58. This represents a premium compared to its industry average Forward P/E of 40.

We can also see that PANW currently has a PEG ratio of 5.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security was holding an average PEG ratio of 2.96 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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