Palo Alto Networks (PANW) ended the recent trading session at $215.17, demonstrating a -1.2% change from the preceding day's closing price. This change lagged the S&P 500's 0.28% loss on the day. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.08%.
Shares of the security software maker have appreciated by 10.37% over the course of the past month, outperforming the Computer and Technology sector's gain of 7.19%, and the S&P 500's gain of 4.03%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.89, showcasing a 14.1% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $2.46 billion, up 15.08% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.79 per share and revenue of $10.42 billion, which would represent changes of +13.47% and +13.03%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. As of now, Palo Alto Networks holds a Zacks Rank of #3 (Hold).
In terms of valuation, Palo Alto Networks is presently being traded at a Forward P/E ratio of 57.53. For comparison, its industry has an average Forward P/E of 71.61, which means Palo Alto Networks is trading at a discount to the group.
Also, we should mention that PANW has a PEG ratio of 2.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.89.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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, Inc. (PANW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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