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Palo Alto Networks (PANW) Beats Stock Market Upswing: What Investors Need to Know
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Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $332.13, moving +0.86% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.08%.
The security software maker's shares have seen a decrease of 7.26% over the last month, not keeping up with the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 7.25% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.12 billion, indicating a 12.76% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.26 per share and a revenue of $9.13 billion, signifying shifts of +10.41% and +13.74%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. Palo Alto Networks is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 52.6. This expresses a premium compared to the average Forward P/E of 30.46 of its industry.
It's also important to note that PANW currently trades at a PEG ratio of 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 2.01 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Palo Alto Networks (PANW) Beats Stock Market Upswing: What Investors Need to Know
Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $332.13, moving +0.86% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.01% for the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.08%.
The security software maker's shares have seen a decrease of 7.26% over the last month, not keeping up with the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 7.25% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.12 billion, indicating a 12.76% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.26 per share and a revenue of $9.13 billion, signifying shifts of +10.41% and +13.74%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. Palo Alto Networks is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 52.6. This expresses a premium compared to the average Forward P/E of 30.46 of its industry.
It's also important to note that PANW currently trades at a PEG ratio of 2.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 2.01 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.