EXELIXIS INC (NASDAQ:EXEL) – A Strong Contender for Growth Investors

EXELIXIS INC (NASDAQ:EXEL) stands out as a compelling candidate for investors following Louis Navellier’s growth-focused strategy. The company, which specializes in developing oncology treatments, meets multiple criteria outlined in Navellier’s "The Little Book That Makes You Rich," demonstrating strong earnings momentum, expanding margins, and robust cash flow. Below, we examine why EXEL fits this approach.

Key Strengths of EXELIXIS

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 15.19% over the past three months, signaling confidence in future performance. EXEL has also delivered four consecutive positive earnings surprises, with an average beat of 55.5%—well above the 10% threshold used in the screen.
• Revenue & Earnings Growth: Sales grew 24.5% year-over-year, while quarterly revenue increased 30.6%. EPS surged 205.6% over the past year, with the latest quarter showing a 175% jump compared to the same period last year.
• Expanding Profitability: Operating margins expanded by 220.1% year-over-year, reflecting improved cost efficiency. The company’s return on equity (30.2%) is among the highest in its industry.
• Strong Cash Flow: Free cash flow grew 209.5% over the past year, providing financial flexibility for further R&D and commercialization efforts.

Valuation & Fundamentals

EXEL’s fundamental rating of 8/10 highlights its profitability, financial health, and growth potential. While its P/E ratio of 19.3 may seem elevated, it remains cheaper than 95% of its biotechnology peers. The company has no debt and maintains a healthy liquidity position, with a current ratio of 3.5.

For a deeper dive, review the full fundamental analysis report for EXEL.

Our Little Book That Makes You Rich screener identifies more stocks that fit this growth-focused strategy.

Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.