Palo Alto Networks (PANW) closed at $204.56 in the latest trading session, marking a +0.39% move from the prior day. This change outpaced the S&P 500's 0.05% loss on the day. Meanwhile, the Dow gained 0.19%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Coming into today, shares of the security software maker had lost 9.44% in the past month. In that same time, the Computer and Technology sector lost 1.06%, while the S&P 500 lost 1.58%.
PANW will be looking to display strength as it nears its next earnings release, which is expected to be September 4, 2019. The company is expected to report EPS of $1.42, up 10.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $803.06 million, up 22.03% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for PANW. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PANW is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PANW is currently trading at a Forward P/E ratio of 32.57. Its industry sports an average Forward P/E of 36.6, so we one might conclude that PANW is trading at a discount comparatively.
Meanwhile, PANW's PEG ratio is currently 1.39. 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 2.2 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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