Palo Alto Networks (PANW - Free Report) closed at $198.20 in the latest trading session, marking a -1.92% move from the prior day. This move lagged the S&P 500's daily gain of 0.66%. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 0.38%.
Heading into today, shares of the security software maker had lost 11.28% over the past month, lagging the Computer and Technology sector's loss of 6.46% and the S&P 500's loss of 5.01% in that time.
Investors will be hoping for strength from PANW as it approaches its next earnings release, which is expected to be September 4, 2019. In that report, analysts expect PANW to post earnings of $1.42 per share. This would mark year-over-year growth of 10.94%. Meanwhile, our latest consensus estimate is calling for revenue of $803.06 million, up 22.03% from the prior-year quarter.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. PANW is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PANW is currently trading at a Forward P/E ratio of 32.3. For comparison, its industry has an average Forward P/E of 36.11, which means PANW is trading at a discount to the group.
Also, we should mention that PANW has a PEG ratio of 1.38. 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. PANW's industry had an average PEG ratio of 2.16 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 52, which puts it in the top 21% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.