In the latest close session, Palo Alto Networks (PANW) was down 2.15% at $214.52. This change lagged the S&P 500's 1.17% loss on the day. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 2.04%.
The security software maker's shares have seen an increase of 3.13% over the last month, not keeping up with the Computer and Technology sector's gain of 5.49% and outstripping the S&P 500's gain of 2.12%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company's upcoming EPS is projected at $0.89, signifying a 14.10% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.46 billion, up 15.08% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.79 per share and a revenue of $10.42 billion, demonstrating changes of +13.47% and +17.45%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.15% upward. Palo Alto Networks is holding a Zacks Rank of #2 (Buy) right now.
With respect to valuation, Palo Alto Networks is currently being traded at a Forward P/E ratio of 57.91. This represents a discount compared to its industry average Forward P/E of 74.85.
We can also see that PANW currently has a PEG ratio of 2.94. 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 was holding an average PEG ratio of 2.92 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 163, this industry ranks in the bottom 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Palo Alto Networks, Inc. (PANW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
