NASDAQ:PANW, a strong growth stock, setting up for a breakout.

Last update: Sep 12, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PALO ALTO NETWORKS INC (NASDAQ:PANW) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted PALO ALTO NETWORKS INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

How We Gauge 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 8 out of 10:

The Earnings Per Share has grown by an impressive 28.28% over the past year.
PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.52% yearly.
The Revenue has grown by 16.46% in the past year. This is quite good.
PANW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.59% yearly.
Based on estimates for the next years, PANW will show a very strong growth in Earnings Per Share. The EPS will grow by 22.86% on average per year.
Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 17.44% on average per year.

Health Insights: 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:

PANW has an Altman-Z score of 5.53. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.53, PANW is doing good in the industry, outperforming 71.02% 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.

Understanding NASDAQ:PANW's Profitability

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:

The Return On Assets of PANW (13.65%) is better than 91.52% of its industry peers.
With an excellent Return On Equity value of 54.78%, PANW belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
PANW has a Return On Invested Capital of 6.30%. This is amongst the best in the industry. PANW outperforms 80.57% of its industry peers.
The Profit Margin of PANW (31.41%) is better than 94.70% of its industry peers.
Looking at the Operating Margin, with a value of 11.29%, PANW belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
With a decent Gross Margin value of 74.43%, PANW is doing good in the industry, outperforming 65.37% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:PANW?

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 7:

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.

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

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

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.