PALO ALTO NETWORKS INC (NASDAQ:PANW) – A Strong Growth Stock with Technical Breakout Potential

PALO ALTO NETWORKS INC (NASDAQ:PANW) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a bullish price pattern, making it worth a closer look.

Growth and Fundamentals

• Strong Growth Metrics: PANW scores an 8 out of 10 in our Growth Rating, reflecting robust revenue and earnings expansion. Revenue grew by 13.91% over the past year, while earnings per share increased by 12.32%. Forward estimates suggest continued growth, with EPS expected to rise by 23.51% annually.
• Profitability: The company holds a Profitability Rating of 6, supported by a healthy gross margin of 73.56% and an operating margin of 12.21%. Its return on equity (17.12%) outperforms 84% of its software industry peers.
• Financial Health: PANW’s Health Rating is 5, with strengths in solvency (no outstanding debt) but some liquidity concerns due to a current ratio below 1.

Technical Setup

• Bullish Trends: Both short-term and long-term trends are positive, with the stock trading near the upper end of its 52-week range.
• Consolidation Breakout: PANW has been consolidating in a range between $178.64 and $198.45, showing reduced volatility. A breakout above $202.95 could signal further upside.
• Support Levels: Key support lies around $185.26, providing a potential stop-loss level for traders.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental report or the technical analysis report.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.