Palo Alto Networks (PANW) ended the recent trading session at $204.30, demonstrating a +1.29% change from the preceding day's closing price. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.
Coming into today, shares of the security software maker had gained 7.59% in the past month. In that same time, the Computer and Technology sector gained 7.62%, while the S&P 500 gained 5.05%.
Analysts and investors alike will be keeping a close eye on the performance of Palo Alto Networks in its upcoming earnings disclosure. On that day, Palo Alto Networks is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 17.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, up 14.15% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.27 per share and revenue of $9.18 billion, indicating changes of +15.14% and +14.41%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 61.6. This expresses a discount compared to the average Forward P/E of 75.44 of its industry.
One should further note that PANW currently holds a PEG ratio of 3.02. 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. The average PEG ratio for the Security industry stood at 3.14 at the close of the market yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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