Palo Alto Networks (PANW) closed at $166.23 in the latest trading session, marking a -5.24% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.84% for the day. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 1.43%.
The security software maker's shares have seen a decrease of 3.68% over the last month, not keeping up with the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. 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. Alongside, our most recent consensus estimate is anticipating revenue of $2.58 billion, indicating a 14.33% upward movement from the same quarter last 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 +14.12%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 past month, the Zacks Consensus EPS estimate has moved 0.32% lower. Palo Alto Networks currently has a Zacks Rank of #4 (Sell).
Investors should also note Palo Alto Networks's current valuation metrics, including its Forward P/E ratio of 45.65. This represents a discount compared to its industry average Forward P/E of 47.58.
One should further note that PANW currently holds a PEG ratio of 2.26. 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. PANW's industry had an average PEG ratio of 2.49 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 207, which puts it in the bottom 16% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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