Is NASDAQ:PANW on the Verge of a Major Breakout as a Strong Growth Stock?

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.

Looking at the Growth

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:

• PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.28%, which is quite impressive.
• The Earnings Per Share has been growing by 25.52% on average over the past years. This is a very strong growth
• The Revenue has grown by 16.46% in the past year. This is quite good.
• The Revenue has been growing by 22.59% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 22.86% 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 17.44% on average per year.

How do we evaluate the Health for NASDAQ:PANW?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PANW, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 5.02 indicates that PANW is not in any danger for bankruptcy at the moment.
• PANW has a Altman-Z score of 5.02. This is in the better half of the industry: PANW outperforms 65.84% of its industry peers.
• PANW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

What does the Profitability looks like 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:

• PANW has a better Return On Assets (12.89%) than 90.75% of its industry peers.
• With an excellent Return On Equity value of 49.86%, PANW belongs to the best of the industry, outperforming 97.15% of the companies in the same industry.
• The Return On Invested Capital of PANW (5.60%) is better than 79.00% of its industry peers.
• PANW's Profit Margin of 32.11% is amongst the best of the industry. PANW outperforms 94.31% of its industry peers.
• The Operating Margin of PANW (11.07%) is better than 81.49% of its industry peers.
• PANW's Gross Margin of 74.35% is fine compared to the rest of the industry. PANW outperforms 64.77% of its industry peers.

Why is NASDAQ:PANW a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:PANW currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is only medium, PANW does present a nice setup opportunity. Prices have been consolidating lately.

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

Our latest full fundamental report of PANW contains the most current fundamental analsysis.

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

Disclaimer

This article should in no way be interpreted as advice. 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.