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

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

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:

• The Earnings Per Share has grown by an nice 17.71% 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 15.00% in the past year. This is quite good.
• 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.
• Based on estimates for the next years, PANW will show a very strong growth in Earnings Per Share. The EPS will grow by 22.98% 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 16.56% on average per year.

A Closer Look at Health for NASDAQ:PANW

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PANW has earned a 5 out of 10:

• PANW has an Altman-Z score of 5.72. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
• PANW's Altman-Z score of 5.72 is fine compared to the rest of the industry. PANW outperforms 65.70% 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.

Looking at the 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 (13.42%) is better than 90.25% of its industry peers.
• With an excellent Return On Equity value of 46.25%, PANW belongs to the best of the industry, outperforming 96.03% 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 77.98% of its industry peers.
• PANW's Profit Margin of 32.99% is amongst the best of the industry. PANW outperforms 94.58% of its industry peers.
• With an excellent Operating Margin value of 12.10%, PANW belongs to the best of the industry, outperforming 80.51% of the companies in the same industry.
• With a decent Gross Margin value of 74.17%, PANW is doing good in the industry, outperforming 64.26% 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:

Although the technical rating is only medium, PANW does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 186.76, a Stop Loss order could be placed below this zone.

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

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.

Keep in mind

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.