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

Last update: Oct 30, 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.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:PANW scores 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.
Looking at the last year, PANW shows a quite strong growth in Revenue. The Revenue has grown by 16.46% in the last year.
Measured over the past years, PANW shows a very strong growth in Revenue. The Revenue has been growing by 22.59% on average per year.
PANW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.86% yearly.
The Revenue is expected to grow by 17.44% on average over the next years. This is quite good.

Evaluating Health: NASDAQ:PANW

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:PANW was assigned a score of 5 for health:

An Altman-Z score of 5.41 indicates that PANW is not in any danger for bankruptcy at the moment.
PANW has a better Altman-Z score (5.41) than 65.71% 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.

What does the Profitability looks like for NASDAQ:PANW

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 12.89%, PANW belongs to the best of the industry, outperforming 90.71% of the companies in the same industry.
PANW has a better Return On Equity (49.86%) than 97.14% of its industry peers.
With a decent Return On Invested Capital value of 5.60%, PANW is doing good in the industry, outperforming 78.93% of the companies in the same industry.
PANW's Profit Margin of 32.11% is amongst the best of the industry. PANW outperforms 94.29% of its industry peers.
With an excellent Operating Margin value of 11.07%, PANW belongs to the best of the industry, outperforming 81.07% of the companies in the same industry.
PANW has a better Gross Margin (74.35%) than 64.64% of its industry peers.

How does the Setup look for NASDAQ:PANW

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.

Besides having an excellent technical rating, PANW also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 354.59, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.