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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $317.52, moving -1.94% from the previous trading session. This change lagged the S&P 500's 0.02% gain on the day. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq decreased by 0.18%.
The security software maker's shares have seen an increase of 6.44% over the last month, surpassing the Computer and Technology sector's loss of 4.21% and the S&P 500's gain of 0.77%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company's earnings per share (EPS) are projected to be $0.97, reflecting a 2.11% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.35 billion, up 32.1% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.77 per share and revenue of $11.41 billion, indicating changes of +12.87% and +23.77%, respectively, compared to the previous 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Palo Alto Networks is presently being traded at a Forward P/E ratio of 85.89. This indicates a premium in contrast to its industry's Forward P/E of 48.32.
We can additionally observe that PANW currently boasts a PEG ratio of 6.47. 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 of the close of trade yesterday, the Security industry held an average PEG ratio of 3.12.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Palo Alto Networks (PANW) Stock Sinks As Market Gains: Here's Why
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $317.52, moving -1.94% from the previous trading session. This change lagged the S&P 500's 0.02% gain on the day. On the other hand, the Dow registered a gain of 0.51%, and the technology-centric Nasdaq decreased by 0.18%.
The security software maker's shares have seen an increase of 6.44% over the last month, surpassing the Computer and Technology sector's loss of 4.21% and the S&P 500's gain of 0.77%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company's earnings per share (EPS) are projected to be $0.97, reflecting a 2.11% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.35 billion, up 32.1% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.77 per share and revenue of $11.41 billion, indicating changes of +12.87% and +23.77%, respectively, compared to the previous 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Palo Alto Networks is presently being traded at a Forward P/E ratio of 85.89. This indicates a premium in contrast to its industry's Forward P/E of 48.32.
We can additionally observe that PANW currently boasts a PEG ratio of 6.47. 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 of the close of trade yesterday, the Security industry held an average PEG ratio of 3.12.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.