Palo Alto Networks (PANW) closed at $184.06 in the latest trading session, marking a -1.92% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 2.06%. At the same time, the Dow lost 1.76%, and the tech-heavy Nasdaq lost 2.39%.
Shares of the security software maker witnessed a loss of 0.97% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.71%, and the S&P 500's gain of 1.63%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company is expected to report EPS of $0.93, up 14.81% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.58 billion, indicating a 14.33% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.84 per share and a revenue of $10.52 billion, representing changes of +14.97% and +14.1%, respectively, from the prior year.
Any recent changes to analyst estimates for Palo Alto Networks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.32% lower within the past month. At present, Palo Alto Networks boasts a Zacks Rank of #4 (Sell).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 48.84. This represents a discount compared to its industry average Forward P/E of 52.6.
Investors should also note that PANW has a PEG ratio of 2.42 right now. 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. As the market closed yesterday, the Security industry was having an average PEG ratio of 2.75.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% of over 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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