Palo Alto Networks (PANW) closed the most recent trading day at $173.55, moving -1.87% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
The security software maker's shares have seen a decrease of 8.17% over the last month, not keeping up with the Computer and Technology sector's gain of 6.37% and the S&P 500's gain of 3.46%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on August 18, 2025. The company is predicted to post an EPS of $0.88, indicating a 17.33% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.5 billion, indicating a 14.18% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.27 per share and a revenue of $9.19 billion, indicating changes of +15.14% and 0%, respectively, from the former year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.52% rise in the Zacks Consensus EPS estimate. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 48.41. This valuation marks a discount compared to its industry average Forward P/E of 63.15.
We can also see that PANW currently has a PEG ratio of 2.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security industry had an average PEG ratio of 2.63 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons 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.
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, Inc. (PANW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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