EXELIXIS INC (NASDAQ:EXEL) stands out as a compelling candidate for investors following Louis Navellier’s growth-focused strategy. The company, which specializes in oncology treatments, meets multiple criteria outlined in Navellier’s "Little Book That Makes You Rich," demonstrating strong earnings momentum, revenue growth, and profitability. Below, we examine why EXEL fits this investment approach.
Key Strengths of EXELIXIS
- Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 18.2% over the last three months. Additionally, EXEL has beaten earnings expectations in each of the last four quarters, with an average surprise of 55.5%.
- Revenue & Earnings Growth: Year-over-year revenue growth stands at 24.5%, while quarterly sales increased by 30.6%. EPS growth is even more impressive, with a 205.6% year-over-year jump and a 175% increase quarter-over-quarter.
- Expanding Profitability: The company’s operating margin has surged by 220% over the past year, reflecting improved cost efficiency. Free cash flow growth of 209.5% further underscores financial strength.
- High Return on Equity (ROE): With an ROE of 30.2%, EXEL generates strong returns on shareholder investments, well above the industry average.
Fundamental Health
EXELIXIS scores an 8 out of 10 in our fundamental rating, excelling in profitability and financial health. The company has no debt, a high Altman-Z score (12.33), and robust liquidity metrics. Despite trading at a P/E of 20.07, it remains undervalued relative to industry peers.
For a deeper dive into EXEL’s financials, review the full fundamental report.
Our Little Book Growth Stock Screener lists more stocks matching these criteria and is updated daily.
Disclaimer
This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.
