Back to top

Image: Bigstock

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

Read MoreHide Full Article

Palo Alto Networks (PANW - Free Report) closed the most recent trading day at $186.85, moving +1.88% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.71%, while the tech-heavy Nasdaq added 0.2%.

The security software maker's shares have seen an increase of 4.5% over the last month, surpassing the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 1.7%.

Investors will be eagerly watching for the performance of Palo Alto Networks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 13, 2025. It is anticipated that the company will report an EPS of $0.75, marking a 2.74% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.24 billion, up 13.26% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.08 per share and a revenue of $9.15 billion, demonstrating changes of +8.45% and +13.97%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 59.57. This indicates a premium in contrast to its industry's Forward P/E of 31.7.

We can also see that PANW currently has a PEG ratio of 2.96. 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 2.32 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Palo Alto Networks, Inc. (PANW) - free report >>

Published in