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

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The latest trading session saw Palo Alto Networks (PANW - Free Report) ending at $304.21, denoting a +0.76% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.77%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 1.05%.

Prior to today's trading, shares of the security software maker had lost 10.19% over the past month. This has was narrower than the Computer and Technology sector's loss of 12.91% and lagged the S&P 500's loss of 5.85% 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 August 19, 2024. The company is expected to report EPS of $1.41, down 2.08% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.16 billion, showing a 10.64% escalation compared to the year-ago quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Palo Alto Networks. Such recent modifications usually signify the changing landscape 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 48.71. This valuation marks a premium compared to its industry's average Forward P/E of 28.53.

Investors should also note that PANW has a PEG ratio of 2.19 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.66.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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