Palo Alto Networks (PANW) closed the most recent trading day at $188.14, moving -0.29% from the previous trading session. This move lagged the S&P 500's daily gain of 0.44%. Elsewhere, the Dow saw an upswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.27%.
The the stock of security software maker has risen by 23.71% in the past month, leading the Computer and Technology sector's gain of 15.87% and the S&P 500's gain of 10.62%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is slated to reveal its earnings on May 20, 2025. The company is forecasted to report an EPS of $0.77, showcasing a 16.67% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.27 billion, up 14.62% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.22 per share and revenue of $9.16 billion. These totals would mark changes of +13.38% and +14.13%, respectively, from last year.
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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 witnessed a 0.04% increase. Currently, Palo Alto Networks is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 58.54. This expresses a discount compared to the average Forward P/E of 67.42 of its industry.
One should further note that PANW currently holds a PEG ratio of 2.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PANW's industry had an average PEG ratio of 3.37 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 31% of all industries, numbering over 250.
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.
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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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