Palo Alto Networks (PANW) closed the most recent trading day at $141.68, moving -0.23% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 1.56%. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 4.66%.
Coming into today, shares of the security software maker had lost 4.88% in the past month. In that same time, the Computer and Technology sector gained 3.96%, while the S&P 500 gained 3.82%.
Wall Street will be looking for positivity from Palo Alto Networks as it approaches its next earnings report date. The company is expected to report EPS of $0.78, up 34.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 25.1% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.42 per share and revenue of $6.88 billion. These totals would mark changes of +35.71% and +25.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.42% lower within the past month. Palo Alto Networks is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Palo Alto Networks’ current valuation metrics, including its Forward P/E ratio of 41.47. This valuation marks a premium compared to its industry’s average Forward P/E of 27.19.
Meanwhile, PANW’s PEG ratio is currently 1.32. 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 Security was holding an average PEG ratio of 2.12 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 169, which puts it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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