Palo Alto Networks (PANW) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Palo Alto Networks (PANW) closed at $508.16, marking a -0.03% move from the previous day.
In the latest trading session, Palo Alto Networks (PANW) closed at $508.16, marking a -0.03% move from the previous day. This change lagged the S&P 500's daily gain of 0.37%.
Coming into today, shares of the security software maker had gained 8.26% in the past month. In that same time, the Computer and Technology sector gained 5.35%, while the S&P 500 gained 5.96%.
PANW will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.57, down 3.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 27.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.24 per share and revenue of $5.31 billion. These totals would mark changes of +17.92% and +24.76%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PANW. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PANW is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that PANW has a Forward P/E ratio of 70.24 right now. Its industry sports an average Forward P/E of 45.09, so we one might conclude that PANW is trading at a premium comparatively.
Meanwhile, PANW's PEG ratio is currently 2.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PANW's industry had an average PEG ratio of 2.7 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>
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
To read this article on Zacks.com click here.
Zacks Investment Research