In the latest trading session, Palo Alto Networks (PANW) closed at $340.28, marking a -1.92% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 1.02%, and the technology-dominated Nasdaq saw a decrease of 0.02%.
The stock of security software maker has fallen by 6.67% in the past month, lagging the Computer and Technology sector's loss of 2.28% and the S&P 500's gain of 0.67%.
The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company is predicted to post an EPS of $0.97, indicating a 4.3% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.31 billion, up 33.62% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.18 per share and revenue of $14.17 billion, indicating changes of +8.85% and +23.42%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Palo Alto Networks possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Palo Alto Networks is presently being traded at a Forward P/E ratio of 83.03. This signifies a premium in comparison to the average Forward P/E of 49.76 for its industry.
We can additionally observe that PANW currently boasts a PEG ratio of 5.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.89.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).