Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $215.71, moving -1.6% from the previous trading session. The stock lagged the S&P 500's daily loss of 0.55%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Coming into today, shares of the security software maker had lost 0.48% in the past month. In that same time, the Computer and Technology sector lost 1.81%, while the S&P 500 gained 0.37%.
PANW will be looking to display strength as it nears its next earnings release, which is expected to be November 19, 2018. The company is expected to report EPS of $1.05, up 41.89% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $631.97 million, up 25.02% from the year-ago period.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $5.02 per share and revenue of $2.77 billion. These results would represent year-over-year changes of +25.81% and +22%, respectively.
Investors should also note any recent changes to analyst estimates for PANW. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 27.2% higher. PANW is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PANW currently has a Forward P/E ratio of 43.67. Its industry sports an average Forward P/E of 57.7, so we one might conclude that PANW is trading at a discount comparatively.
Meanwhile, PANW's PEG ratio is currently 1.86. 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. The Security was holding an average PEG ratio of 3.17 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.