Palo Alto Networks (PANW) Dips More Than Broader Markets: What
This story originally appeared on Zacks
In the latest trading session, Palo Alto Networks (PANW) closed at $525.49, marking a -1.39% move from the previous day. This change lagged the S&P 500’s 0.41% loss on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 0.13%.
– Zacks
Heading into today, shares of the security software maker had gained 1.02% over the past month, outpacing the Computer and Technology sector’s loss of 1.8% and lagging the S&P 500’s gain of 2.36% in that time.
Palo Alto Networks will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.65, up 6.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.28 billion, up 25.9% from the year-ago period.
PANW’s full-year Zacks Consensus Estimates are calling for earnings of $7.24 per share and revenue of $5.39 billion. These results would represent year-over-year changes of +17.92% and +26.57%, respectively.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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).
Investors should also note Palo Alto Networks’s current valuation metrics, including its Forward P/E ratio of 73.59. This valuation marks a premium compared to its industry’s average Forward P/E of 67.93.
Investors should also note that PANW has a PEG ratio of 2.51 right now. 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 3.73 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 235, which puts it in the bottom 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
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