The latest trading session saw Palo Alto Networks (PANW) ending at $376.67, denoting a -0.46% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.05%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Coming into today, shares of the security software maker had gained 9.95% in the past month. In that same time, the Computer and Technology sector gained 3.5%, while the S&P 500 gained 2.76%.

The investment community will be paying close attention to the earnings performance of Palo Alto Networks in its upcoming release. The company's upcoming EPS is projected at $1.48, signifying a 7.25% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.12 billion, indicating a 12.81% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.26 per share and revenue of $9.13 billion. These totals would mark changes of +10.41% and +13.75%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Palo Alto Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. As of now, Palo Alto Networks holds a Zacks Rank of #2 (Buy).

In terms of valuation, Palo Alto Networks is presently being traded at a Forward P/E ratio of 60.42. This represents a premium compared to its industry's average Forward P/E of 32.36.

Meanwhile, PANW's PEG ratio is currently 3.12. 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 2.19 as of yesterday's close.