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

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.

Looking at the 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 9 out of 10:

• PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 75.40%, which is quite impressive.
• The Earnings Per Share has been growing by 27.93% on average over the past years. This is a very strong growth
• PANW shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.29%.
• Measured over the past years, PANW shows a very strong growth in Revenue. The Revenue has been growing by 24.83% 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 20.04% yearly.
• Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 17.33% on average per year.

A Closer Look at Health for 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 3.74 indicates that PANW is not in any danger for bankruptcy at the moment.
• PANW has a Altman-Z score of 3.74. This is in the better half of the industry: PANW outperforms 65.48% 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.

How do we evaluate the Profitability for NASDAQ:PANW?

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:

• PANW has a Return On Assets of 3.03%. This is amongst the best in the industry. PANW outperforms 82.21% of its industry peers.
• The Return On Equity of PANW (25.15%) is better than 94.31% of its industry peers.
• With an excellent Return On Invested Capital value of 4.45%, PANW belongs to the best of the industry, outperforming 81.85% of the companies in the same industry.
• The Profit Margin of PANW (6.38%) is better than 83.63% of its industry peers.
• Looking at the Operating Margin, with a value of 5.62%, PANW is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
• The Gross Margin of PANW (72.29%) is better than 66.19% of its industry peers.

How do we evaluate the setup 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.

PANW has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 233.32, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

This article should in no way be interpreted as advice in any way. 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.