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The most recent trading session ended with Palo Alto Networks (PANW) standing at $170.58, reflecting a +1.64% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.12%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq decreased by 0.23%.
Coming into today, shares of the security software maker had lost 17.13% in the past month. In that same time, the Computer and Technology sector lost 3.73%, while the S&P 500 lost 3.45%.
The upcoming earnings release of Palo Alto Networks will be of great interest to investors. The company is expected to report EPS of $0.75, up 2.74% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.24 billion, indicating a 13.25% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.07 per share and a revenue of $9.15 billion, demonstrating changes of +8.1% and +13.96%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Right now, Palo Alto Networks possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Palo Alto Networks is currently trading at a Forward P/E ratio of 54.7. This expresses a premium compared to the average Forward P/E of 27.61 of its industry.
Investors should also note that PANW has a PEG ratio of 2.72 right now. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.05.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 250 industries.