Palo Alto Networks (PANW) ended the recent trading session at $180.79, demonstrating a -0.64% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.16%.

The security software maker's stock has dropped by 10.05% in the past month, falling short of the Computer and Technology sector's gain of 1.86% and the S&P 500's loss of 2.36%.

The investment community will be closely monitoring the performance of Palo Alto Networks in its forthcoming earnings report. The company is predicted to post an EPS of $0.76, indicating a 4.11% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.24 billion, up 13.22% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.07 per share and revenue of $9.15 billion. These totals would mark changes of +8.1% and +13.98%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Palo Alto Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% higher. At present, Palo Alto Networks boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Palo Alto Networks is presently trading at a Forward P/E ratio of 59.22. This indicates a premium in contrast to its industry's Forward P/E of 27.8.

It is also worth noting that PANW currently has a PEG ratio of 3.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PANW's industry had an average PEG ratio of 2.03 as of yesterday's close.