Palo Alto Networks (PANW) Beats Stock Market Upswing: What Investors Need to Know
The latest trading session saw Palo Alto Networks (PANW) ending at $335.77, denoting a +1.73% adjustment from its last day's close. This change outpaced the S&P 500's 0.88% gain on the day. Elsewhere, the Dow saw an upswing of 0.54%, while the tech-heavy Nasdaq appreciated by 1.35%.
Shares of the security software maker have appreciated by 9.66% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.72% and the S&P 500's gain of 0.64%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company is forecasted to report an EPS of $1.30, showcasing a 23.81% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.97 billion, showing a 19.08% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.49 per share and revenue of $8.17 billion, which would represent changes of +23.65% and +18.58%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Palo Alto Networks is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Palo Alto Networks is currently exchanging hands at a Forward P/E ratio of 60.14. This denotes a premium relative to the industry's average Forward P/E of 33.59.
It is also worth noting that PANW currently has a PEG ratio of 2.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PANW's industry had an average PEG ratio of 1.72 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PANW in the coming trading sessions, be sure to utilize Zacks.com.
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
