Palo Alto Networks (PANW) Sees Strong Performance in Security Software Industry\n\nPalo Alto Networks (PANW) has been making headlines recently as one of the most searched stocks on Zacks.com. With a 17.3% return over the past month, the company has outperformed the Zacks S&P 500 composite index, which saw a 4.9% change during the same period. \n\nOne key factor to consider is the company’s earnings estimates. At Zacks, we prioritize analyzing changes in a company’s projected future earnings as a key indicator of its stock’s value. As earnings estimates increase, so does the stock’s fair value, leading to an increase in its market price. This correlation between earnings estimates and stock price movements has been supported by empirical studies.\n\nFor the current quarter, Palo Alto is expected to post earnings of $1.30 per share, a 23.8% increase from the previous year. Over the last 30 days, the Zacks Consensus Estimate has increased by 8.5%. Similarly, for the current fiscal year, the consensus earnings estimate of $5.49 points to a 23.7% increase from the previous year, with a 9% increase over the last 30 days. Looking ahead, the consensus estimate for the next fiscal year is $6.43, indicating a 17.2% increase from the previous year, with a 0.6% increase over the last 30 days.\n\nIn addition to earnings estimates, our proprietary stock rating tool, the Zacks Rank, also takes into account a company’s track record and external audits. Due to the recent increase in earnings estimates, along with other factors, Palo Alto is currently rated Zacks Rank #3 (Hold).\n\nWhile earnings growth is a key indicator of a company’s financial health, revenue growth is also crucial. In the case of Palo Alto, the consensus sales estimate of $1.97 billion for the current quarter represents a 19.1% increase from the previous year. Looking ahead, the estimates for the current and next fiscal years indicate increases of 18.6% and 18%, respectively.\n\nIn its last reported quarter, Palo Alto saw a 20.1% increase in revenues, with earnings per share of $1.38 compared to $0.83 in the previous year. While the company has not consistently surpassed consensus revenue estimates, it has an impressive earnings surprise history, beating the Zacks Consensus Estimate in each of the last four quarters with an average surprise of 9.9%.\n\n Palo Alto Networks (PANW) continues to see strong performance in the security software industry, with increasing earnings and revenue estimates.