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Palo Alto Networks (PANW) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $338.73, marking a -0.52% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.
Shares of the security software maker have depreciated by 2.83% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. On that day, Palo Alto Networks is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 7.25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 12.76% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.26 per share and revenue of $9.13 billion, indicating changes of +10.41% and +13.74%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 0.49% higher. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 54.39. This valuation marks a premium compared to its industry's average Forward P/E of 30.41.
Meanwhile, PANW's PEG ratio is currently 2.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.02.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Palo Alto Networks (PANW) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Palo Alto Networks (PANW - Free Report) closed at $338.73, marking a -0.52% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.62%, and the technology-centric Nasdaq increased by 0.6%.
Shares of the security software maker have depreciated by 2.83% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. On that day, Palo Alto Networks is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 7.25%. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 12.76% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.26 per share and revenue of $9.13 billion, indicating changes of +10.41% and +13.74%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 0.49% higher. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 54.39. This valuation marks a premium compared to its industry's average Forward P/E of 30.41.
Meanwhile, PANW's PEG ratio is currently 2.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.02.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.