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Palo Alto Networks (PANW) Outpaces Stock Market Gains: What You Should Know

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Palo Alto Networks (PANW - Free Report) closed at $398.10 in the latest trading session, marking a +1.71% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 0.06%.

Shares of the security software maker have appreciated by 4.88% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.92% and outperforming the S&P 500's gain of 4.37%.

The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. The company is scheduled to release its earnings on November 20, 2024. The company is expected to report EPS of $1.48, up 7.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 12.81% from the prior-year quarter.

PANW's full-year Zacks Consensus Estimates are calling for earnings of $6.26 per share and revenue of $9.13 billion. These results would represent year-over-year changes of +10.41% and +13.75%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Palo Alto Networks. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Palo Alto Networks is currently sporting a Zacks Rank of #2 (Buy).

Looking at valuation, Palo Alto Networks is presently trading at a Forward P/E ratio of 62.5. For comparison, its industry has an average Forward P/E of 32.45, which means Palo Alto Networks is trading at a premium to the group.

We can additionally observe that PANW currently boasts a PEG ratio of 3.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.51 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 56, putting it in the top 23% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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