Why NASDAQ:ALKS Is a Promising High-Growth Stock in the Midst of Consolidation.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ALKERMES PLC (NASDAQ:ALKS) 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 ALKERMES PLC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Insights: NASDAQ:ALKS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ALKS has earned a 8 for growth:

• ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.91%, which is quite impressive.
• ALKS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
• The Revenue has grown by 24.60% in the past year. This is a very strong growth!
• The Earnings Per Share is expected to grow by 61.20% on average over the next years. This is a very strong growth
• ALKS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.68% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NASDAQ:ALKS's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ALKS has achieved a 6 out of 10:

• An Altman-Z score of 3.35 indicates that ALKS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ALKS (3.35) is better than 78.24% of its industry peers.
• ALKS has a debt to FCF ratio of 1.84. This is a very positive value and a sign of high solvency as it would only need 1.84 years to pay back of all of its debts.
• The Debt to FCF ratio of ALKS (1.84) is better than 95.85% of its industry peers.
• ALKS has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for ALKS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
• ALKS has a Current Ratio of 2.87. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
• ALKS has a Quick Ratio of 2.48. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for NASDAQ:ALKS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ALKS has achieved a 6:

• ALKS has a Return On Assets of 4.71%. This is amongst the best in the industry. ALKS outperforms 95.35% of its industry peers.
• With an excellent Return On Equity value of 8.04%, ALKS belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 5.13%, ALKS belongs to the top of the industry, outperforming 95.85% of the companies in the same industry.
• With an excellent Profit Margin value of 7.04%, ALKS belongs to the best of the industry, outperforming 95.35% of the companies in the same industry.
• The Operating Margin of ALKS (7.56%) is better than 95.35% of its industry peers.
• ALKS has a Gross Margin of 84.54%. This is amongst the best in the industry. ALKS outperforms 88.54% of its industry peers.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:ALKS is 7:

ALKS has a bad 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 27.01, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

Our latest full technical report of ALKS contains the most current technical analsysis.

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.