EXELIXIS INC (NASDAQ:EXEL) – A Strong Growth Stock with Technical Breakout Potential

EXELIXIS INC (NASDAQ:EXEL) has been identified as a strong growth stock with a favorable technical setup by our stock screener. The company demonstrates solid growth fundamentals while also presenting a promising technical pattern. Below, we examine why EXEL stands out in both areas.

Fundamental Strengths

EXELIXIS earns a high fundamental rating of 8/10, supported by strong growth, profitability, and financial health. Key highlights include:

• Growth: Revenue grew by 24.5% over the past year, with earnings per share (EPS) surging 205.56%. Future EPS growth is projected at 26.65% annually.
• Profitability: The company boasts a 27.99% profit margin and a 35.43% operating margin, outperforming most peers in the biotechnology sector.
• Financial Health: With no debt and a strong Altman-Z score of 12.03, EXELIXIS maintains a solid balance sheet.
• Valuation: Despite strong growth, the stock trades at a reasonable 15.79x forward P/E, below industry averages.

Technical Setup

The technical analysis report assigns EXEL a 10/10 rating, with a setup score of 8/10, indicating a consolidation phase with breakout potential:

• Trend: Both short-term and long-term trends are positive, with the stock trading near the upper end of its 52-week range.
• Support Levels: Multiple support zones exist between $42.38 - $42.87, providing a potential floor for pullbacks.
• Volume & Momentum: Average daily volume of 3.1 million shares ensures liquidity, while relative strength outperforms 94% of biotech stocks.
• Breakout Potential: Reduced volatility and consolidation suggest a possible upward move if resistance levels are breached.

Why This Combination Matters

Stocks with strong fundamentals and bullish technical patterns often present compelling opportunities. EXELIXIS fits this profile, combining accelerating earnings growth with a favorable chart structure.

For a deeper dive, review the full fundamental report and technical analysis.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.