NASDAQ:PANW—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

In this article, we'll take a closer look at PALO ALTO NETWORKS INC (NASDAQ:PANW) as a potential candidate for growth investing. While it's important for investors to conduct their own research, PALO ALTO NETWORKS INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

ChartMill's Evaluation of Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PANW has received a 9 out of 10:

• The Earnings Per Share has grown by an impressive 77.29% over the past year.
• Measured over the past years, PANW shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.93% on average per year.
• The Revenue has grown by 23.89% in the past year. This is a very strong growth!
• The Revenue has been growing by 24.83% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 23.50% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 18.50% on average over the next years. This is quite good.

Looking at the Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PANW has earned a 5 out of 10:

• An Altman-Z score of 5.59 indicates that PANW is not in any danger for bankruptcy at the moment.
• PANW has a better Altman-Z score (5.59) than 71.84% of its industry peers.
• There is no outstanding debt for PANW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

Profitability Analysis for 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:

• PANW has a better Return On Assets (4.15%) than 83.03% of its industry peers.
• Looking at the Return On Equity, with a value of 28.28%, PANW belongs to the top of the industry, outperforming 93.86% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 6.25%, PANW belongs to the top of the industry, outperforming 83.75% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 8.52%, PANW belongs to the top of the industry, outperforming 84.12% of the companies in the same industry.
• PANW has a Operating Margin of 8.15%. This is in the better half of the industry: PANW outperforms 79.42% 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.

How does the Setup look for NASDAQ:PANW

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:PANW is 7:

PANW has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 345.07. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 344.47, 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.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.