Palo Alto Networks (PANW) closed the most recent trading day at $220.55, moving +0.74% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.36%.
Heading into today, shares of the security software maker had gained 14.97% over the past month, outpacing the Computer and Technology sector's gain of 10.66% and the S&P 500's gain of 8.17% in that time.
Wall Street will be looking for positivity from PANW as it approaches its nex t earnings report date. This is expected to be February 26, 2019. In tha t report , analysts expect PANW to post earnings of $1.22 per share. This would mark year-over-year growth of 41.86%. Meanwhile, our latest consensus estimate is calling for revenue of $682.76 million, up 25.88% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.19 per share and revenue of $2.83 billion, which would represent changes of +30.08% and +24.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for PANW. These recent revisions tend to reflect the evolving nature of short-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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PANW is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note PANW's current valuation metrics, including its Forward P/E ratio of 42.15. Its industry sports an average Forward P/E of 47.68, so we one might conclude that PANW is trading at a discount comparatively.
Investors should also note that PANW has a PEG ratio of 1.8 right now. 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 2.46 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.