In the latest trading session, Palo Alto Networks (PANW) closed at $214.11, marking a -0.2% move from the previous day. This move lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.39%.
Prior to today's trading, shares of the security software maker had gained 2.24% over the past month. This has outpaced the Computer and Technology sector's loss of 4.48% and the S&P 500's loss of 4.84% in that time.
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.
Investors should also note any recent changes to analyst estimates for PANW. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business 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 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 past month, the Zacks Consensus EPS estimate remained stagnant. PANW is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PANW is holding a Forward P/E ratio of 34.33. Its industry sports an average Forward P/E of 36.36, so we one might conclude that PANW is trading at a discount comparatively.
Meanwhile, PANW's PEG ratio is currently 1.47. 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. The Security was holding an average PEG ratio of 2.22 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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