Palo Alto Networks (PANW) ended the recent trading session at $207.89, demonstrating a +1.16% change from the preceding day's closing price. This change outpaced the S&P 500's 0.53% gain on the day. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq appreciated by 0.52%.
The security software maker's stock has dropped by 0.08% in the past month, falling short of the Computer and Technology sector's gain of 2.01% and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company is predicted to post an EPS of $0.89, indicating a 14.1% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.46 billion, up 15.08% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.79 per share and a revenue of $10.42 billion, indicating changes of +13.47% and +13.03%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. Palo Alto Networks presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 54.29. This represents a discount compared to its industry average Forward P/E of 67.99.
It is also worth noting that PANW currently has a PEG ratio of 2.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 2.75 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 23% 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.
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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