Palo Alto Networks (PANW) closed the latest trading day at $192, indicating a -0.78% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow lost 0.64%, and the Nasdaq, a tech-heavy index, added 1.61%.
Shares of the security software maker have appreciated by 13.84% over the course of the past month, outperforming the Computer and Technology sector's gain of 11.93% and the S&P 500's gain of 9.07%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on May 20, 2025. The company's earnings per share (EPS) are projected to be $0.77, reflecting a 16.67% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.27 billion, up 14.62% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.22 per share and a revenue of $9.16 billion, demonstrating changes of +13.38% and +14.13%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Right now, Palo Alto Networks possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Palo Alto Networks is at present trading with a Forward P/E ratio of 60.03. This valuation marks a discount compared to its industry's average Forward P/E of 69.51.
It's also important to note that PANW currently trades at a PEG ratio of 3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security was holding an average PEG ratio of 3.1 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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