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

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In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $241.08, marking a -0.41% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.1%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, added 0.08%.

Prior to today's trading, shares of the security software maker had lost 5.72% over the past month. This has lagged the Computer and Technology sector's gain of 1.55% and the S&P 500's gain of 1.72% in that time.

The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. The company is scheduled to release its earnings on November 15, 2023. The company is forecasted to report an EPS of $1.16, showcasing a 39.76% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.84 billion, up 17.8% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.34 per share and revenue of $8.18 billion, indicating changes of +20.27% and +18.65%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Palo Alto Networks. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Palo Alto Networks is carrying a Zacks Rank of #2 (Buy).

Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 45.38. This expresses a premium compared to the average Forward P/E of 35.05 of its industry.

It is also worth noting that PANW currently has a PEG ratio of 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PANW's industry had an average PEG ratio of 1.56 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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