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The latest trading session saw Palo Alto Networks (PANW) ending at $186.27, denoting a -0.35% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.21%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Coming into today, shares of the security software maker had gained 7.94% in the past month. In that same time, the Computer and Technology sector gained 1.66%, while the S&P 500 lost 0.7%.
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 $0.77, up 16.67% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.27 billion, indicating a 14.62% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.22 per share and a revenue of $9.16 billion, demonstrating changes of +13.38% and +14.13%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% higher. Palo Alto Networks is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Palo Alto Networks is currently exchanging hands at a Forward P/E ratio of 57.99. This valuation marks a discount compared to its industry's average Forward P/E of 66.01.
It is also worth noting that PANW currently has a PEG ratio of 2.9. 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 the market closed yesterday, the Security industry was having an average PEG ratio of 3.26.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% of all 250+ industries.