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Palo Alto Networks (PANW) Dips More Than Broader Market: What You Should Know
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Palo Alto Networks (PANW - Free Report) closed at $361.12 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the security software maker had gained 5.92% over the past month. This has outpaced the Computer and Technology sector's gain of 2.1% and the S&P 500's gain of 0.41% in that time.
Investors will be eagerly watching for the performance of Palo Alto Networks in its upcoming earnings disclosure. 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 Zacks Consensus Estimate for revenue is projecting net sales of $2.12 billion, up 12.81% from the year-ago period.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $9.13 billion. These results would represent year-over-year changes of +10.41% and +13.75%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Palo Alto Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 57.91. This valuation marks a premium compared to its industry's average Forward P/E of 31.17.
It's also important to note that PANW currently trades at a PEG ratio of 2.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 34% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Dips More Than Broader Market: What You Should Know
Palo Alto Networks (PANW - Free Report) closed at $361.12 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the security software maker had gained 5.92% over the past month. This has outpaced the Computer and Technology sector's gain of 2.1% and the S&P 500's gain of 0.41% in that time.
Investors will be eagerly watching for the performance of Palo Alto Networks in its upcoming earnings disclosure. 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 Zacks Consensus Estimate for revenue is projecting net sales of $2.12 billion, up 12.81% from the year-ago period.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $9.13 billion. These results would represent year-over-year changes of +10.41% and +13.75%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Palo Alto Networks is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 57.91. This valuation marks a premium compared to its industry's average Forward P/E of 31.17.
It's also important to note that PANW currently trades at a PEG ratio of 2.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 34% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.