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

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether PALO ALTO NETWORKS INC (NASDAQ:PANW) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but PALO ALTO NETWORKS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Unpacking NASDAQ:PANW's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PANW boasts a 9 out of 10:

• The Earnings Per Share has grown by an impressive 77.29% over the past year.
• 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 23.89%.
• PANW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.83% yearly.
• PANW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.50% yearly.
• Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 18.02% on average per year.

How We Gauge Health for NASDAQ:PANW

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 4.92. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
• PANW's Altman-Z score of 4.92 is fine compared to the rest of the industry. PANW outperforms 69.29% of its industry peers.
• PANW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

Profitability Assessment of NASDAQ:PANW

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:PANW was assigned a score of 6 for profitability:

• With an excellent Return On Assets value of 4.15%, PANW belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
• PANW's Return On Equity of 28.28% is amongst the best of the industry. PANW outperforms 94.29% of its industry peers.
• With an excellent Return On Invested Capital value of 6.25%, PANW belongs to the best of the industry, outperforming 83.57% of the companies in the same industry.
• With an excellent Profit Margin value of 8.52%, PANW belongs to the best of the industry, outperforming 84.29% of the companies in the same industry.
• PANW's Operating Margin of 8.15% is fine compared to the rest of the industry. PANW outperforms 79.64% of its industry peers.
• PANW's Gross Margin of 73.35% is fine compared to the rest of the industry. PANW outperforms 66.43% of its industry peers.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:PANW is 8:

PANW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 299.39, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

Keep in mind

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.