PALO ALTO NETWORKS INC (NASDAQ:PANW): a strong growth stock preparing for the next leg up?.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether PALO ALTO NETWORKS INC (NASDAQ:PANW) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but PALO ALTO NETWORKS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Analyzing Growth Metrics

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 nice 11.71% over the past year.
• Measured over the past years, PANW shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.52% on average per year.
• PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.86%.
• 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 22.98% 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 16.56% on average per year.

Health Insights: NASDAQ:PANW

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:

• An Altman-Z score of 5.70 indicates that PANW is not in any danger for bankruptcy at the moment.
• PANW's Altman-Z score of 5.70 is fine compared to the rest of the industry. PANW outperforms 70.91% 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.

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 (5.99%) is better than 78.55% of its industry peers.
• PANW's Return On Equity of 19.68% is amongst the best of the industry. PANW outperforms 87.27% of its industry peers.
• The Return On Invested Capital of PANW (6.06%) is better than 77.09% of its industry peers.
• With an excellent Profit Margin value of 14.64%, PANW belongs to the best of the industry, outperforming 81.09% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 12.20%, PANW belongs to the top of the industry, outperforming 80.73% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 73.86%, PANW is in the better half of the industry, outperforming 62.55% of the companies in the same industry.

Why is NASDAQ:PANW a setup?

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. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 176.01, a Stop Loss order could be placed below this zone.

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

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

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

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.