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In the latest trading session, Palo Alto Networks (PANW) closed at $519.67, marking a +0.01% move from the previous day. This change outpaced the S&P 500's 1.1% loss on the day. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, added 0.03%.
Prior to today's trading, shares of the security software maker had lost 6.34% over the past month. This has lagged the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 1.81% in that time.
Investors will be hoping for strength from Palo Alto Networks as it approaches its next earnings release. On that day, Palo Alto Networks is projected to report earnings of $1.65 per share, which would represent year-over-year growth of 6.45%. Meanwhile, our latest consensus estimate is calling for revenue of $1.28 billion, up 25.9% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.24 per share and revenue of $5.39 billion. These totals would mark changes of +17.92% and +26.57%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Palo Alto Networks. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 71.76. For comparison, its industry has an average Forward P/E of 66.45, which means Palo Alto Networks is trading at a premium to the group.
It is also worth noting that PANW currently has a PEG ratio of 2.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security was holding an average PEG ratio of 3.45 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
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