In the latest trading session, Palo Alto Networks (PANW) closed at $169.98, marking a +0.97% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 0.64%.

Shares of the security software maker witnessed a loss of 7.68% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 4.81% and the S&P 500's loss of 3.56%.

The upcoming earnings release of Palo Alto Networks will be of great interest to investors. The company is forecasted to report an EPS of $0.77, showcasing a 16.67% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $2.28 billion, showing a 14.63% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.22 per share and revenue of $9.17 billion, which would represent changes of +13.38% and +14.2%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palo Alto Networks. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.21% fall in the Zacks Consensus EPS estimate. Palo Alto Networks currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Palo Alto Networks is holding a Forward P/E ratio of 52.26. This expresses a discount compared to the average Forward P/E of 58.38 of its industry.

One should further note that PANW currently holds a PEG ratio of 2.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security industry currently had an average PEG ratio of 3.06 as of yesterday's close.

The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 72, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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 Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research