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Palo Alto Networks (PANW) Declines More Than Market: Some Information for Investors
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Palo Alto Networks (PANW - Free Report) closed at $375.04 in the latest trading session, marking a -5.54% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 1.88%.
Heading into today, shares of the security software maker had gained 5.85% over the past month, outpacing the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
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. Meanwhile, the latest consensus estimate predicts the revenue to be $3.31 billion, indicating a 33.62% increase compared to the same quarter of the previous year.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $4.18 per share and revenue of $14.17 billion. These results would represent year-over-year changes of +8.85% and +23.43%, respectively.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Palo Alto Networks is currently being traded at a Forward P/E ratio of 95.02. This indicates a premium in contrast to its industry's Forward P/E of 57.68.
Also, we should mention that PANW has a PEG ratio of 6.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry currently had an average PEG ratio of 3.2 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Palo Alto Networks (PANW) Declines More Than Market: Some Information for Investors
Palo Alto Networks (PANW - Free Report) closed at $375.04 in the latest trading session, marking a -5.54% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 1.88%.
Heading into today, shares of the security software maker had gained 5.85% over the past month, outpacing the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
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. Meanwhile, the latest consensus estimate predicts the revenue to be $3.31 billion, indicating a 33.62% increase compared to the same quarter of the previous year.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $4.18 per share and revenue of $14.17 billion. These results would represent year-over-year changes of +8.85% and +23.43%, respectively.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Palo Alto Networks is currently being traded at a Forward P/E ratio of 95.02. This indicates a premium in contrast to its industry's Forward P/E of 57.68.
Also, we should mention that PANW has a PEG ratio of 6.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry currently had an average PEG ratio of 3.2 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.