In the latest trading session, Palo Alto Networks (PANW) closed at $172.76, marking a -0.96% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.97%. Meanwhile, the Dow experienced a drop of 1.69%, and the technology-dominated Nasdaq saw a decrease of 2.7%.
The security software maker's shares have seen a decrease of 6.97% over the last month, not keeping up with the Computer and Technology sector's loss of 4.83% and the S&P 500's loss of 2.79%.
The upcoming earnings release of Palo Alto Networks will be of great interest to investors. In that report, analysts expect Palo Alto Networks to post earnings of $0.77 per share. This would mark year-over-year growth of 16.67%. In the meantime, our current consensus estimate forecasts the revenue to be $2.28 billion, indicating a 14.63% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.22 per share and a revenue of $9.17 billion, representing changes of +13.38% and +14.2%, respectively, from the prior year.
Investors should also pay attention to any latest changes in 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 shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% decrease. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 54.15. This denotes a discount relative to the industry's average Forward P/E of 61.25.
One should further note that PANW currently holds a PEG ratio of 2.7. 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. The average PEG ratio for the Security industry stood at 3.12 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 143, this industry ranks in the bottom 44% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Palo Alto Networks, Inc. (PANW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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