In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $247.91, marking a -1.14% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.5%.
Heading into today, shares of the security software maker had gained 5.78% over the past month, outpacing the Computer and Technology sector's gain of 2.84% and the S&P 500's gain of 2.62% in that time.
Wall Street will be looking for positivity from PANW as it approaches its next earnings report date. This is expected to be May 29, 2019. The company is expected to report EPS of $1.25, up 26.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $703.44 million, up 24.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.47 per share and revenue of $2.87 billion, which would represent changes of +37.09% and +26.07%, respectively, from the prior year.
Any recent changes to analyst estimates for PANW should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 7.06% higher within the past month. PANW is currently a Zacks Rank #3 (Hold).
In terms of valuation, PANW is currently trading at a Forward P/E ratio of 45.83. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 45.83.
It is also worth noting that PANW currently has a PEG ratio of 1.96. 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 2.49 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 23% 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.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.