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Palo Alto Networks (PANW) Stock Drops Despite Market Gains: Important Facts to Note
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $321.89, moving -1.51% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Meanwhile, the Dow experienced a drop of 0.12%, and the technology-dominated Nasdaq saw an increase of 0.07%.
The security software maker's stock has dropped by 3.6% in the past month, exceeding the Computer and Technology sector's loss of 4.62% and lagging the S&P 500's loss of 0.21%.
Investors will be eagerly watching for the performance of Palo Alto Networks in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.41, indicating a 2.08% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 10.64% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and revenue of $8 billion, which would represent changes of +25.45% and +16.05%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Palo Alto Networks. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 58.69. This expresses a premium compared to the average Forward P/E of 31.36 of its industry.
It's also important to note that PANW currently trades at a PEG ratio of 2.64. 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 average PEG ratio for the Internet - Software industry stood at 1.8 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Palo Alto Networks (PANW) Stock Drops Despite Market Gains: Important Facts to Note
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $321.89, moving -1.51% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Meanwhile, the Dow experienced a drop of 0.12%, and the technology-dominated Nasdaq saw an increase of 0.07%.
The security software maker's stock has dropped by 3.6% in the past month, exceeding the Computer and Technology sector's loss of 4.62% and lagging the S&P 500's loss of 0.21%.
Investors will be eagerly watching for the performance of Palo Alto Networks in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.41, indicating a 2.08% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.16 billion, up 10.64% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and revenue of $8 billion, which would represent changes of +25.45% and +16.05%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Palo Alto Networks. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.03% increase. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 58.69. This expresses a premium compared to the average Forward P/E of 31.36 of its industry.
It's also important to note that PANW currently trades at a PEG ratio of 2.64. 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 average PEG ratio for the Internet - Software industry stood at 1.8 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.