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Is NASDAQ:PANW on the Verge of a Major Breakout as a Strong Growth Stock?

By Mill Chart

Last update: Apr 15, 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.

A Closer Look at Growth for NASDAQ:PANW

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PANW has achieved a 9 out of 10:

  • The Earnings Per Share has grown by an impressive 64.36% over the past year.
  • PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.93% yearly.
  • Looking at the last year, PANW shows a very strong growth in Revenue. The Revenue has grown by 22.28%.
  • PANW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.83% yearly.
  • PANW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.50% yearly.
  • The Revenue is expected to grow by 18.02% on average over the next years. This is quite good.

Evaluating Health: 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:

  • PANW has an Altman-Z score of 4.40. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.40, PANW is doing good in the industry, outperforming 66.18% of the companies in the same industry.
  • 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 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:

  • PANW has a Return On Assets of 12.45%. This is amongst the best in the industry. PANW outperforms 93.09% of its industry peers.
  • With an excellent Return On Equity value of 52.25%, PANW belongs to the best of the industry, outperforming 97.82% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 5.74%, PANW belongs to the top of the industry, outperforming 82.18% of the companies in the same industry.
  • The Profit Margin of PANW (30.24%) is better than 95.64% of its industry peers.
  • The Operating Margin of PANW (10.33%) is better than 82.55% of its industry peers.
  • With a decent Gross Margin value of 74.05%, PANW is doing good in the industry, outperforming 66.91% of the companies in the same industry.

Looking at the 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 8:

PANW has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 279.54. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 269.00, a Stop Loss order could be placed below this zone.

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.

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

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.

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PALO ALTO NETWORKS INC

NASDAQ:PANW (5/24/2024, 7:00:02 PM)

After market: 321.64 +0.04 (+0.01%)

321.6

+10.16 (+3.26%)

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