Why NASDAQ:PANW Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Mar 22, 2024

In this article we will dive into PALO ALTO NETWORKS INC (NASDAQ:PANW) as a possible candidate for growth investing. Investors should always do their own research, but we noticed PALO ALTO NETWORKS INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

A Closer Look at Growth for NASDAQ:PANW

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:PANW was assigned a score of 9 for growth:

The Earnings Per Share has grown by an impressive 64.36% 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 22.28%.
The Revenue has been growing by 24.83% on average over the past years. This is a very strong growth!
PANW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.50% yearly.
PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.02% yearly.

Health Analysis for NASDAQ:PANW

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:

PANW has an Altman-Z score of 4.52. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
PANW's Altman-Z score of 4.52 is fine compared to the rest of the industry. PANW outperforms 65.95% 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.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PANW, the assigned 6 is noteworthy for profitability:

With an excellent Return On Assets value of 12.45%, PANW belongs to the best of the industry, outperforming 93.91% of the companies in the same industry.
The Return On Equity of PANW (52.25%) is better than 98.21% of its industry peers.
PANW has a Return On Invested Capital of 5.74%. This is amongst the best in the industry. PANW outperforms 81.36% of its industry peers.
PANW has a better Profit Margin (30.24%) than 96.42% of its industry peers.
PANW's Operating Margin of 10.33% is amongst the best of the industry. PANW outperforms 81.72% of its industry peers.
PANW's Gross Margin of 74.05% is fine compared to the rest of the industry. PANW outperforms 67.03% of its industry peers.

How does the Setup look for NASDAQ:PANW

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:PANW exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is only medium, PANW does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 287.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 284.36, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of PANW

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

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.