Yahoo Finance Palo Alto Networks (PANW) Rises Higher Than Market: Key Facts
In the latest market close, Palo Alto Networks (PANW) reached $293.51, with a +0.72% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.35%.
Heading into today, shares of the security software maker had gained 2.57% over the past month, outpacing the Computer and Technology sector's loss of 1.9% and the S&P 500's loss of 2% in that time.
The upcoming earnings release of Palo Alto Networks will be of great interest to investors. The company's upcoming EPS is projected at $1.26, signifying a 14.55% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.97 billion, showing a 14.3% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.49 per share and a revenue of $8 billion, demonstrating changes of +23.65% and +16.07%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Palo Alto Networks is currently exchanging hands at a Forward P/E ratio of 53.04. This valuation marks a premium compared to its industry's average Forward P/E of 29.07.
We can additionally observe that PANW currently boasts a PEG ratio of 2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.73.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
