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

Investors looking for growth opportunities often search for stocks that combine solid financials with positive technical patterns. One way to find these opportunities is by screening for stocks showing strong growth metrics, such as rising revenue and earnings, while also displaying technical breakout signals. This approach uses both financial health and market momentum to identify stocks likely to move higher. EXELIXIS INC (NASDAQ:EXEL) appears as a strong candidate under this strategy, with solid growth fundamentals and a promising technical setup.

Fundamental Strength: A Growth Stock with Financial Stability

EXELIXIS INC, a biotechnology company specializing in cancer treatments, performs well across key fundamental measures. Its fundamental analysis report gives the company an overall score of 8/10, with high marks in profitability (8/10), financial health (9/10), and growth (8/10). Here’s why these metrics are important for growth investors:

• Profitability: The company has a notable Return on Invested Capital (ROIC) of 26.25%, significantly higher than its cost of capital, showing efficient resource use. Its operating margin of 35.43% ranks among the best in its industry.
• Financial Health: With no debt and a current ratio of 3.50, EXELIXIS maintains a strong financial position, lowering downside risk—a key consideration for growth stocks that may experience volatility.
• Growth Performance: Over the past year, EPS jumped by 205.56%, while revenue increased by 24.50%. Future estimates predict continued growth, with EPS expected to rise by 25.80% annually.

These fundamentals match the ideas in our growth investing introduction, where lasting profitability and expanding markets are crucial for long-term success. EXELIXIS’s focus on oncology—a sector with steady demand—further supports its growth outlook.

Technical Setup: A Potential Breakout

The technical analysis report gives EXELIXIS a high 10/10 rating, noting strong performance across short- and long-term periods. Key technical points include:

• Trend Strength: Both short-term and long-term trends are positive, with the stock trading above its 20-day, 50-day, 100-day, and 200-day moving averages—a sign of continued upward momentum.
• Consolidation Pattern: The stock has moved between $42.66 and $48.74 over the past month, with recent activity suggesting a possible breakout above resistance near $46.16, $46.27.
• Volume Signals: A recent Pocket Pivot—a bullish volume pattern—indicates institutional interest, often a sign of upcoming price increases.

The mix of a tight trading range and strong trends makes EXELIXIS a potential breakout candidate, especially if it moves past the resistance area. This fits the goal of finding stocks where technical momentum supports fundamental strength.

Why This Combination Works

Growth stocks with strong technical setups offer two key benefits:

1. Fundamentals Build Confidence: High growth rates, profitability, and financial health reduce the risk of investing in trends that may not last.
2. Technical Patterns Improve Timing: Breakouts from consolidation phases often mark the start of a new upward move, letting investors enter before broader market attention.

EXELIXIS shows this balance. Its fundamentals suggest it can maintain growth, while its technicals indicate the market is starting to recognize this potential.

Finding More Opportunities

For investors interested in similar stocks, our Strong Growth Stocks with Good Technical Setup Ratings screen offers a list of stocks meeting these criteria.

Disclaimer: This analysis is not investment advice. Always do your own research or consult a financial advisor before making investment decisions.