In the latest trading session, Palo Alto Networks (PANW) closed at $501.37, marking a -0.07% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the security software maker had lost 3.01% over the past month. This has lagged the Computer and Technology sector's gain of 12.8% and the S&P 500's gain of 8.67% in that time.
Wall Street will be looking for positivity from Palo Alto Networks as it approaches its next earnings report date. This is expected to be August 22, 2022. In that report, analysts expect Palo Alto Networks to post earnings of $2.28 per share. This would mark year-over-year growth of 42.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.54 billion, up 26.65% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Palo Alto Networks. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Palo Alto Networks currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 54.14. Its industry sports an average Forward P/E of 51.62, so we one might conclude that Palo Alto Networks is trading at a premium comparatively.
Also, we should mention that PANW has a PEG ratio of 1.72. 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 2.56 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report
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