Palo Alto Networks (PANW) closed the most recent trading day at $185.86, moving +2.05% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow experienced a rise of 0.99%, and the technology-dominated Nasdaq saw an increase of 0.65%.
Shares of the security software maker have depreciated by 6.77% over the course of the past month, underperforming the Computer and Technology sector's loss of 1.47%, and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.93, marking a 14.81% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.58 billion, up 14.34% from the prior-year quarter.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $3.84 per share and revenue of $10.52 billion. These results would represent year-over-year changes of +14.97% and +14.06%, respectively.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.2% lower. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Palo Alto Networks is currently exchanging hands at a Forward P/E ratio of 47.43. This valuation marks a discount compared to its industry average Forward P/E of 53.06.
Also, we should mention that PANW has a PEG ratio of 2.35. 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 Security industry currently had an average PEG ratio of 2.74 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 45% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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
