Palo Alto Networks (PANW) Registers a Bigger Fall Than the Market: Important Facts to Note

Company Performance - Palo Alto Networks (PANW) closed at $193.84, down 5.21% from the previous day, underperforming the S&P 500, which lost 0.3% [1] - The stock has decreased by 0.07% over the past month, while the Computer and Technology sector gained 4.85% and the S&P 500 gained 3.64% [1] Upcoming Earnings - Palo Alto Networks is projected to report earnings of $0.88 per share, reflecting a year-over-year growth of 17.33% [2] - The consensus estimate for revenue is $2.5 billion, indicating a 14.17% increase compared to the same quarter last year [2] Annual Forecast - Zacks Consensus Estimates forecast earnings of $3.27 per share and revenue of $9.19 billion for the year, representing increases of 15.14% and 14.42% respectively [3] Analyst Estimates - Recent changes to analyst estimates for Palo Alto Networks are important as they indicate the evolving business trends [4] - Upbeat changes in estimates suggest a favorable outlook on the company's health and profitability [4] Zacks Rank - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks averaging a 25% annual return since 1988 [6] - Currently, Palo Alto Networks holds a Zacks Rank of 3 (Hold) with no changes in the consensus EPS estimate over the past month [6] Valuation Metrics - Palo Alto Networks has a Forward P/E ratio of 62.46, which is a discount compared to the industry average Forward P/E of 76.62 [7] - The company has a PEG ratio of 3.06, compared to the Security industry's average PEG ratio of 3.15 [7] Industry Context - The Security industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 32, placing it in the top 13% of over 250 industries [8] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [8]