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Palo Alto Networks (PANW) Registers a Bigger Fall Than the Market: Important Facts to Note

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Palo Alto Networks (PANW - Free Report) closed at $326.36 in the latest trading session, marking a -1.37% move from the prior day. This change lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow experienced a drop of 0.3%, and the technology-dominated Nasdaq saw a decrease of 0.74%.

Heading into today, shares of the security software maker had lost 18.06% over the past month, lagging the Computer and Technology sector's loss of 13.13% and the S&P 500's loss of 3.31%.

The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. The company is scheduled to release its earnings on November 18, 2026. The company is forecasted to report an EPS of $0.97, showcasing a 4.3% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.31 billion, up 33.62% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.18 per share and revenue of $14.17 billion. These totals would mark changes of +8.85% and +23.42%, respectively, from last year.

Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

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.

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 79.19. This expresses a premium compared to the average Forward P/E of 45.22 of its industry.

We can additionally observe that PANW currently boasts a PEG ratio of 5.26. 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. Security stocks are, on average, holding a PEG ratio of 2.7 based on yesterday's closing prices.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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