Palo Alto Networks PANW Stock was recently added to Zacks.com’s Watch Stocks list. Therefore, several important factors could influence the stock’s performance shortly.
Shares of the security software company have risen 17.6% over the past month, while shares of the Zacks S&P 500 Composite have risen 4.7%. Zacks Internet Software – Palo Alto increased its holdings by 11.1% in the given period. The real question now is: where can this stock go in the short term?
Media reports or rumours about major changes in a company’s business prospects often trigger. PANW stock trends and rapid price changes, but there are a few factors that tend to influence purchasing decisions.
Earnings Estimate Revisions
At Zacks, we like to analyze changes in a company’s earnings estimates rather than focusing on anything else. In other words, we believe that the true value of shares is determined by the present value of future earnings.
This study examines how sell-side analysts updating earnings estimates for the PANW stock to reflect recent business trends. If the company’s earnings expectations rise, the PANW stock price will rise as well. When the actual price is higher than the current market price, investors show more interest in the PANW stock and its price increases. Empirical studies therefore show a strong correlation between earnings forecasts and short-term stock price movements.
Palo Alto is expected to post earnings of $1.26 per share for the quarter; This represents a year-over-year change of +14.6%. Over the past 30 days, the PANW stock has fallen below the Zacks Consensus Estimate (-1.3%).
12 Month EPS
Wait For The Money To Grow
It can be said that a company’s revenue growth is an indicator of its financial health, even if there is no revenue growth. It is almost impossible for a company to increase sales without increasing sales in the long run. Therefore, it is very important to know the development potential of the company.
Palo Alto’s consensus revenue estimate for the quarter was $1.97 billion, representing a year-over-year change of 14.2%. Estimates of $8 billion and $9.28 billion represent a change of 16.1% and 16% for the current and next fiscal years, respectively.
Blog By:- ExpertSadar
