NASDAQ:ALKS—A High-Growth Stock Gearing Up for Its Next Upward Move.

In this article we will dive into ALKERMES PLC (NASDAQ:ALKS) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ALKERMES PLC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Assessing Growth Metrics for NASDAQ:ALKS

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:ALKS, the assigned 8 reflects its growth potential:

• ALKS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 211.63%, which is quite impressive.
• Measured over the past years, ALKS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.87% on average per year.
• The Revenue has grown by 40.56% 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
• Based on estimates for the next years, ALKS will show a quite strong growth in Revenue. The Revenue will grow by 11.68% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Analysis for NASDAQ:ALKS

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:ALKS has received a 6 out of 10:

• An Altman-Z score of 3.21 indicates that ALKS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ALKS (3.21) is better than 77.78% of its industry peers.
• The Debt to FCF ratio of ALKS is 1.15, which is an excellent value as it means it would take ALKS, only 1.15 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.15, ALKS belongs to the top of the industry, outperforming 95.85% of the companies in the same industry.
• ALKS has a Debt/Equity ratio of 0.21. 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 2.91. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.
• ALKS has a Quick Ratio of 2.53. This indicates that ALKS is financially healthy and has no problem in meeting its short term obligations.

Profitability Insights: NASDAQ:ALKS

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:ALKS was assigned a score of 6 for profitability:

• With an excellent Return On Assets value of 9.42%, ALKS belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
• The Return On Equity of ALKS (15.84%) is better than 96.85% of its industry peers.
• ALKS has a better Return On Invested Capital (9.83%) than 96.52% of its industry peers.
• ALKS's Profit Margin of 13.50% is amongst the best of the industry. ALKS outperforms 96.52% of its industry peers.
• With an excellent Operating Margin value of 13.89%, ALKS belongs to the best of the industry, outperforming 96.35% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 85.11%, ALKS belongs to the top of the industry, outperforming 88.39% of the companies in the same industry.

How does the Setup look for NASDAQ:ALKS

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:ALKS has a 7 as its setup rating, indicating its current consolidation status.

Although the technical rating is bad, ALKS does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 23.80, 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 ALKS contains the most current fundamental analsysis.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.