Palo Alto Networks (PANW) closed at $164.11 in the latest trading session, marking a +1.56% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.8%. On the other hand, the Dow registered a loss of 0.15%, and the technology-centric Nasdaq increased by 1.6%.
Prior to today's trading, shares of the security software maker had lost 4.49% lagged the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.15%.
Investors will be eagerly watching for the performance of Palo Alto Networks in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.81, signifying a 1.25% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.94 billion, indicating a 28.58% upward movement from the same quarter last year.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $3.71 per share and revenue of $11.2 billion. These results would represent year-over-year changes of +11.08% and +21.51%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Palo Alto Networks is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Palo Alto Networks has a Forward P/E ratio of 43.52 right now. This indicates a premium in contrast to its industry's Forward P/E of 30.47.
We can additionally observe that PANW currently boasts a PEG ratio of 3.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security industry currently had an average PEG ratio of 2.38 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).