NASDAQ:PANW: a strong growth stock preparing for the next leg up?.

Last update: May 7, 2024

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.

A Closer Look at Growth for NASDAQ:PANW

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 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.
The Revenue has grown by 22.28% in the past year. This is a very strong growth!
PANW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.83% yearly.
The Earnings Per Share is expected to grow by 26.40% on average over the next years. This is a very strong growth
Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 16.70% on average per year.

A Closer Look at Health for NASDAQ:PANW

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:PANW, the assigned 5 reflects its health status:

An Altman-Z score of 4.64 indicates that PANW is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.64, PANW is doing good in the industry, outperforming 67.88% of the companies in the same industry.
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 Assessment of NASDAQ:PANW

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:PANW has achieved a 6:

PANW's Return On Assets of 12.45% is amongst the best of the industry. PANW outperforms 92.34% of its industry peers.
PANW has a Return On Equity of 52.25%. This is amongst the best in the industry. PANW outperforms 97.45% of its industry peers.
PANW has a Return On Invested Capital of 5.74%. This is amongst the best in the industry. PANW outperforms 81.75% of its industry peers.
PANW has a better Profit Margin (30.24%) than 95.62% of its industry peers.
Looking at the Operating Margin, with a value of 10.33%, PANW belongs to the top of the industry, outperforming 83.21% of the companies in the same industry.
PANW has a Gross Margin of 74.05%. This is in the better half of the industry: PANW outperforms 66.79% of its industry peers.

How does the Setup look for NASDAQ:PANW

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:PANW this score is currently 8:

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. There is a resistance zone just above the current price starting at 300.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 293.17, 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.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.