Why EXELIXIS INC (NASDAQ:EXEL) qualifies as a high growth stock.

Our stock screener has detected a potential breakout setup on EXELIXIS INC (NASDAQ:EXEL). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NASDAQ:EXEL.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall EXEL gets a technical rating of 10 out of 10. Both in the recent history as in the last year, EXEL has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that EXEL is one of the better performing stocks in the market, outperforming 95% of all stocks. On top of that, EXEL also shows a nice and consistent pattern of rising prices.
• EXEL is one of the better performing stocks in the Biotechnology industry, it outperforms 94% of 572 stocks in the same industry.
• EXEL is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• EXEL is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

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

Looking at the Setup

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:EXEL has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, EXEL also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 38.57, a Stop Loss order could be placed below this zone.

Some of the high growth metrics of NASDAQ:EXEL highlighted

Earnings Momentum

• The EPS of EXEL has exhibited growth from one quarter to another (Q2Q), with a 77.78% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• EXEL has experienced 189.0% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• The 3-year EPS growth of EXEL (37.61%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• EXEL has exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Financial Strength & Profitability

• With positive growth in its operating margin over the past year, EXEL showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• The free cash flow (FCF) of EXEL has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• EXEL demonstrates a strong Return on Equity(ROE) of 23.23%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. EXELIXIS INC shows promising potential for continued success.
• With a current Debt-to-Equity ratio at 0.0, EXEL showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.

Institutional Confidence & Market Strength

• The ownership composition of EXEL reflects a balanced investor ecosystem, with institutional shareholders owning 91.92%. This indicates a broader market participation and potential for increased trading liquidity.
• EXEL has exhibited strong Relative Strength(RS) in recent periods, with a current 95.1 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. EXELIXIS INC shows promising potential for continued price momentum.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Disclaimer

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