In the latest close session, Palo Alto Networks (PANW) was down 1.58% at $162.70. This move lagged the S&P 500's daily loss of 1.57%. Elsewhere, the Dow lost 1.34%, while the tech-heavy Nasdaq lost 2.04%.
Prior to today's trading, shares of the security software maker had lost 13.42% lagged the Computer and Technology sector's loss of 1.83% and the S&P 500's loss of 0.29%.
The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. The company is scheduled to release its earnings on February 17, 2026. The company is forecasted to report an EPS of $0.93, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.58 billion, indicating a 14.33% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.84 per share and revenue of $10.53 billion. These totals would mark changes of +14.97% and +14.16%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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% lower within the past month. Palo Alto Networks is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 43.05 right now. This represents a discount compared to its industry average Forward P/E of 43.87.
It's also important to note that PANW currently trades at a PEG ratio of 2.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PANW's industry had an average PEG ratio of 2.45 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 175, which puts it in the bottom 29% 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.
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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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