Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $243.23, moving +0.86% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.07%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the security software maker had gained 13.44% over the past month. This has outpaced the Computer and Technology sector's gain of 4.99% and the S&P 500's gain of 4.3% in that time.
Investors will be hoping for strength from PANW as it approaches its next earnings release, which is expected to be November 25, 2019. In that report, analysts expect PANW to post earnings of $1.03 per share. This would mark a year-over-year decline of 11.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $767.60 million, up 17.01% from the year-ago period.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $5.07 per share and revenue of $3.46 billion. These results would represent year-over-year changes of -6.97% and +19.5%, respectively.
Investors might also notice recent changes to analyst estimates for PANW. These revisions help to show the ever-changing nature of near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PANW is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PANW is holding a Forward P/E ratio of 47.56. Its industry sports an average Forward P/E of 41.64, so we one might conclude that PANW is trading at a premium comparatively.
Meanwhile, PANW's PEG ratio is currently 1.97. 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. The Security was holding an average PEG ratio of 2.36 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 9, which puts it in the top 4% 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.