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Why Palo Alto Networks (PANW) Outpaced the Stock Market Today
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In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $357.35, marking a +2.67% move from the previous day. This change outpaced the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.12%.
Heading into today, shares of the security software maker had gained 27.94% over the past month, outpacing the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.
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 upcoming EPS is projected at $0.97, signifying a 2.11% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.35 billion, reflecting a 32.1% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.77 per share and a revenue of $11.41 billion, demonstrating changes of +12.87% and +23.71%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.14% lower. Palo Alto Networks is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 92.32. This indicates a premium in contrast to its industry's Forward P/E of 49.06.
It is also worth noting that PANW currently has a PEG ratio of 6.96. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.26.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Why Palo Alto Networks (PANW) Outpaced the Stock Market Today
In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $357.35, marking a +2.67% move from the previous day. This change outpaced the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.12%.
Heading into today, shares of the security software maker had gained 27.94% over the past month, outpacing the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.
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 upcoming EPS is projected at $0.97, signifying a 2.11% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.35 billion, reflecting a 32.1% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.77 per share and a revenue of $11.41 billion, demonstrating changes of +12.87% and +23.71%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.14% lower. Palo Alto Networks is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 92.32. This indicates a premium in contrast to its industry's Forward P/E of 49.06.
It is also worth noting that PANW currently has a PEG ratio of 6.96. 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. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.26.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.