Palo Alto Networks shares quickly pare gains, now up 1.2%

Palo Alto Networks shares quickly pare gains, now up 1.2%

Title: Palo Alto Networks Shares Quickly Pare Gains, Now Up 1.2%

Palo Alto Networks (PANW) shares experienced a notable gain of 1.78% in the latest trading session, closing at $190.72. This performance exceeded the S&P 500's daily gain of 0.14% and was more significant than the 0.2% increase seen in the Dow and the 0.27% rise in the tech-heavy Nasdaq. Despite this recent upward movement, the stock has fallen by 4.52% in the past month, lagging the broader Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%.

Analysts are closely monitoring Palo Alto Networks' upcoming earnings report, with expectations for earnings per share (EPS) to increase by 17.33% to $0.88 for the current quarter. The consensus estimate forecasts revenue to be $2.5 billion, indicating a 14.17% growth compared to the same period last year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.27 per share and a revenue of $9.19 billion, signifying shifts of +15.14% and +14.42%, respectively, from the prior year.

The company's stock currently trades at a Forward P/E ratio of 57.24, which is lower than the industry average of 71.99. Additionally, PANW's PEG ratio is 2.81, indicating a favorable valuation relative to its expected earnings growth rate. The Security industry, to which Palo Alto Networks belongs, ranks in the top 30% of all industries, according to the Zacks Industry Rank.

The recent changes in analyst estimates for Palo Alto Networks suggest optimism about the company's business outlook. The Zacks Rank, a proprietary model that considers these estimate changes, currently assigns PANW a Zacks Rank of #3 (Hold). This ranking indicates that while the stock is not a strong buy, it offers potential for moderate growth.

Investors should keep an eye on the upcoming earnings report and any further developments in the cybersecurity sector, which has been a significant growth driver for Palo Alto Networks.

References:
1. [https://stockanalysis.com/stocks/panw/](https://stockanalysis.com/stocks/panw/)
2. [https://www.nasdaq.com/articles/why-palo-alto-networks-panw-outpaced-stock-market-today](https://www.nasdaq.com/articles/why-palo-alto-networks-panw-outpaced-stock-market-today)