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Palo Alto Networks (PANW) Suffers a Larger Drop Than the General Market: Key Insights
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $398.42, moving -1.76% from the previous trading session. This change lagged the S&P 500's 0.47% loss on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq lost 1.25%.
The security software maker's shares have seen an increase of 21.03% over the last month, surpassing the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. The company is predicted to post an EPS of $0.97, indicating a 4.3% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.31 billion, showing a 33.62% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.18 per share and a revenue of $14.17 billion, indicating changes of +8.85% and +23.43%, respectively, from the former year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 past month, the Zacks Consensus EPS estimate has moved 0.64% higher. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Palo Alto Networks is currently exchanging hands at a Forward P/E ratio of 97.06. For comparison, its industry has an average Forward P/E of 55.51, which means Palo Alto Networks is trading at a premium to the group.
It is also worth noting that PANW currently has a PEG ratio of 6.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security industry currently had an average PEG ratio of 3.18 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% 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.
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) Suffers a Larger Drop Than the General Market: Key Insights
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $398.42, moving -1.76% from the previous trading session. This change lagged the S&P 500's 0.47% loss on the day. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq lost 1.25%.
The security software maker's shares have seen an increase of 21.03% over the last month, surpassing the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. The company is predicted to post an EPS of $0.97, indicating a 4.3% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.31 billion, showing a 33.62% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.18 per share and a revenue of $14.17 billion, indicating changes of +8.85% and +23.43%, respectively, from the former year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 past month, the Zacks Consensus EPS estimate has moved 0.64% higher. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Palo Alto Networks is currently exchanging hands at a Forward P/E ratio of 97.06. For comparison, its industry has an average Forward P/E of 55.51, which means Palo Alto Networks is trading at a premium to the group.
It is also worth noting that PANW currently has a PEG ratio of 6.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Security industry currently had an average PEG ratio of 3.18 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.