Why NASDAQ:PANW Is a Standout High-Growth Stock in a Consolidation Phase.

Last update: Dec 18, 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.

Understanding NASDAQ:PANW's Growth Score

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 8 for growth:

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.
PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.52% yearly.
PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.00%.
The Revenue has been growing by 22.59% on average over the past years. This is a very strong growth!
Based on estimates for the next years, PANW will show a very strong growth in Earnings Per Share. The EPS will grow by 22.97% on average per year.
PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.75% yearly.

Understanding NASDAQ:PANW's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PANW has received a 5 out of 10:

PANW has an Altman-Z score of 3.36. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
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.

Profitability Analysis for NASDAQ:PANW

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:PANW was assigned a score of 6 for profitability:

The Return On Assets of PANW (13.42%) is better than 91.01% of its industry peers.
With an excellent Return On Equity value of 46.25%, PANW belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
PANW has a Return On Invested Capital of 6.00%. This is in the better half of the industry: PANW outperforms 78.42% of its industry peers.
PANW has a better Profit Margin (32.99%) than 94.96% of its industry peers.
With an excellent Operating Margin value of 12.10%, PANW belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
PANW has a better Gross Margin (74.17%) than 63.31% of its industry peers.

Looking at the 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 8 as its setup rating, suggesting a particular level of consolidation in the stock.

PANW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 202.96. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 201.18, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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.

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

Keep in mind

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.