Yahoo Finance Here's Why Palo Alto Networks (PANW) Fell More Than Broader Market
In the latest market close, Palo Alto Networks (PANW) reached $316.68, with a -1.14% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.31%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, lost 1.09%.
The the stock of security software maker has fallen by 0.39% in the past month, lagging the Computer and Technology sector's gain of 6.41% and the S&P 500's gain of 2.73%.
Market participants will be closely following the financial results of Palo Alto Networks in its upcoming release. The company is predicted to post an EPS of $1.41, indicating a 2.08% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.16 billion, up 10.64% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.57 per share and a revenue of $8 billion, demonstrating changes of +25.45% and +16.05%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Palo Alto Networks currently has a Forward P/E ratio of 57.52. This expresses a premium compared to the average Forward P/E of 30.05 of its industry.
Investors should also note that PANW has a PEG ratio of 2.59 right now. 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. The average PEG ratio for the Internet - Software industry stood at 1.72 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.
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
