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Palo Alto Networks (PANW) Rises As Market Takes a Dip: Key Facts

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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $302.25, moving +1.61% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.29%.

Heading into today, shares of the security software maker had gained 6.59% over the past month, outpacing the Computer and Technology sector's gain of 1.39% and the S&P 500's gain of 1.29% in that time.

Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company plans to announce its earnings on May 20, 2024. The company is predicted to post an EPS of $1.25, indicating a 13.64% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.97 billion, up 14.3% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.50 per share and a revenue of $7.98 billion, signifying shifts of +23.87% and +15.72%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.25% higher within the past month. Right now, Palo Alto Networks possesses a Zacks Rank of #4 (Sell).

In the context of valuation, Palo Alto Networks is at present trading with a Forward P/E ratio of 54.13. Its industry sports an average Forward P/E of 29.61, so one might conclude that Palo Alto Networks is trading at a premium comparatively.

One should further note that PANW currently holds a PEG ratio of 2.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 1.62 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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