Palo Alto Networks (PANW) Falls More Steeply Than Broader Market: What Investors Need to Know

Palo Alto Networks (PANW) closed the latest trading day at $188.50, indicating a -0.53% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.The security software maker's stock has dropped by 1.39% in the past month, falling short of the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 1.05%.The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. In that report, analysts expect Palo Alto Networks to post earnings of $0.76 per share. This would mark year-over-year growth of 4.11%. In the meantime, our current consensus estimate forecasts the revenue to be $2.24 billion, indicating a 13.22% growth compared to the corresponding quarter of the prior year.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.07 per share and revenue of $9.15 billion, indicating changes of +8.1% and +13.98%, respectively, compared to the previous year.Investors should also take note of any recent adjustments to analyst estimates for Palo Alto Networks. Such recent modifications usually signify the changing landscape 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Palo Alto Networks presently features a Zacks Rank of #3 (Hold).Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 61.68. Its industry sports an average Forward P/E of 33.27, so one might conclude that Palo Alto Networks is trading at a premium comparatively.One should further note that PANW currently holds a PEG ratio of 3.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.4 based on yesterday's closing prices.The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks