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Palo Alto Networks (PANW) Gains As Market Dips: What You Should Know

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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $400.32, moving +0.32% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.18%.

Coming into today, shares of the security software maker had gained 7.04% in the past month. In that same time, the Computer and Technology sector gained 3.16%, while the S&P 500 gained 2.44%.

Wall Street will be looking for positivity from PANW as it approaches its next earnings report date. The company is expected to report EPS of $1.44, down 2.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.17 billion, up 23.44% from the year-ago period.

Any recent changes to analyst estimates for PANW should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PANW is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PANW has a Forward P/E ratio of 66.6 right now. This represents a premium compared to its industry's average Forward P/E of 50.68.

Investors should also note that PANW has a PEG ratio of 2.85 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry currently had an average PEG ratio of 2.98 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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