NASDAQ:PANW—A High-Growth Stock Gearing Up for Its Next Upward Move.

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.

Evaluating Growth: 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 48.28% 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 20.05% 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
• The Revenue is expected to grow by 16.70% on average over the next years. This is quite good.

Understanding NASDAQ:PANW's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PANW has achieved a 5 out of 10:

• An Altman-Z score of 4.95 indicates that PANW is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.95, PANW is in the better half of the industry, outperforming 70.65% 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.

Assessing Profitability for 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:

• Looking at the Return On Assets, with a value of 13.65%, PANW belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
• PANW has a Return On Equity of 54.78%. This is amongst the best in the industry. PANW outperforms 97.83% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 6.30%, PANW belongs to the top of the industry, outperforming 81.88% of the companies in the same industry.
• PANW's Profit Margin of 31.41% is amongst the best of the industry. PANW outperforms 96.01% of its industry peers.
• PANW has a Operating Margin of 11.29%. This is amongst the best in the industry. PANW outperforms 83.33% of its industry peers.
• Looking at the Gross Margin, with a value of 74.43%, PANW is in the better half of the industry, outperforming 65.94% of the companies in the same industry.

How does the Setup look for NASDAQ:PANW

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:PANW has a 8 as its setup rating, indicating its current consolidation status.

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 very little resistance above the current price. There is a support zone below the current price at 292.78, a Stop Loss order could be placed below this zone.

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

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

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

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.