Exploring the Growth Potential of NASDAQ:PANW as It Nears a Breakout.

Last update: Nov 26, 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.

Assessing Growth for NASDAQ:PANW

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PANW has received a 8 out of 10:

PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.71%, which is quite good.
The Earnings Per Share has been growing by 25.52% on average over the past years. This is a very strong growth
PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.00%.
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.
PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.44% yearly.

Analyzing Health Metrics

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:PANW scores a 5 out of 10:

An Altman-Z score of 5.86 indicates that PANW is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.86, PANW is doing good in the industry, outperforming 64.87% of the companies in the same industry.
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

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PANW scores a 6 out of 10:

The Return On Assets of PANW (13.42%) is better than 91.40% of its industry peers.
PANW has a better Return On Equity (46.25%) than 96.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.00%, PANW is in the better half of the industry, outperforming 79.21% of the companies in the same industry.
The Profit Margin of PANW (32.99%) is better than 94.98% of its industry peers.
With an excellent Operating Margin value of 12.10%, PANW belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
With a decent Gross Margin value of 74.17%, PANW is doing good in the industry, outperforming 62.37% of the companies in the same industry.

How does the Setup look for NASDAQ:PANW

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various 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. There is very little resistance above the current price. There is a support zone below the current price at 369.67, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.