NASDAQ:PANW qualifies as a high growth stock and is consolidating.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PALO ALTO NETWORKS INC (NASDAQ:PANW) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted PALO ALTO NETWORKS INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Unpacking NASDAQ:PANW's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PANW has achieved a 9 out of 10:

• PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.40%, which is quite impressive.
• PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.93% yearly.
• Looking at the last year, PANW shows a very strong growth in Revenue. The Revenue has grown by 25.29%.
• Measured over the past years, PANW shows a very strong growth in Revenue. The Revenue has been growing by 24.83% on average per year.
• Based on estimates for the next years, PANW will show a very strong growth in Earnings Per Share. The EPS will grow by 23.78% on average per year.
• PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.16% yearly.

Understanding NASDAQ:PANW's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:PANW was assigned a score of 5 for health:

• PANW has an Altman-Z score of 3.86. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 3.86, PANW is doing good in the industry, outperforming 69.20% of the companies in the same industry.
• PANW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Evaluating Profitability: NASDAQ:PANW

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PANW, the assigned 6 is a significant indicator of profitability:

• With an excellent Return On Assets value of 3.03%, PANW belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
• PANW's Return On Equity of 25.15% is amongst the best of the industry. PANW outperforms 94.20% of its industry peers.
• The Return On Invested Capital of PANW (4.45%) is better than 81.16% of its industry peers.
• With an excellent Profit Margin value of 6.38%, PANW belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
• PANW's Operating Margin of 5.62% is fine compared to the rest of the industry. PANW outperforms 77.17% of its industry peers.
• PANW has a better Gross Margin (72.29%) than 65.58% of its industry peers.

How does the Setup look for NASDAQ:PANW

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:PANW currently has a 8 as setup rating:

Besides having an excellent technical rating, PANW also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 259.41. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 244.17, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of PANW for a complete fundamental analysis.

Our latest full technical report of PANW contains the most current technical analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.