In the latest trading session, Palo Alto Networks (PANW) closed at $348.66, marking a -2.79% move from the previous day. This change lagged the S&P 500's 0.19% loss on the day. Meanwhile, the Dow experienced a drop of 0.59%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
Heading into today, shares of the security software maker had gained 24.64% over the past month, outpacing the Computer and Technology sector's loss of 4.32% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company is expected to report EPS of $0.97, up 2.11% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.35 billion, showing a 32.1% escalation compared to the year-ago quarter.
PANW's full-year Zacks Consensus Estimates are calling for earnings of $3.77 per share and revenue of $11.41 billion. These results would represent year-over-year changes of +12.87% and +23.71%, respectively.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Palo Alto Networks presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Palo Alto Networks is presently trading at a Forward P/E ratio of 95.14. Its industry sports an average Forward P/E of 51.25, so one might conclude that Palo Alto Networks is trading at a premium comparatively.
One should further note that PANW currently holds a PEG ratio of 7.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security industry currently had an average PEG ratio of 3.27 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 20% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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).