Exploring the Growth Potential of HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) as It Nears a Breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but HARMONY BIOSCIENCES HOLDINGS has surfaced on our radar for growth with base formation, warranting further examination.

Deciphering HRMY's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of HRMY, the assigned 9 reflects its growth potential:

• Measured over the past years, HRMY shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.61% on average per year.
• HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.80%.
• HRMY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 160.13% yearly.
• HRMY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.90% yearly.
• HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.10% yearly.

Understanding HRMY's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. HRMY scores a 8 out of 10:

• HRMY has an Altman-Z score of 4.91. This indicates that HRMY is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.91, HRMY belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
• The Debt to FCF ratio of HRMY is 0.82, which is an excellent value as it means it would take HRMY, only 0.82 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.82, HRMY belongs to the best of the industry, outperforming 94.95% of the companies in the same industry.
• A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
• HRMY has a Current Ratio of 3.31. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
• HRMY has a Quick Ratio of 3.27. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
• HRMY's Quick ratio of 3.27 is fine compared to the rest of the industry. HRMY outperforms 60.10% of its industry peers.

Evaluating Profitability: HRMY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, HRMY has achieved a 8:

• The Return On Assets of HRMY (14.56%) is better than 95.96% of its industry peers.
• The Return On Equity of HRMY (22.07%) is better than 93.94% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 18.94%, HRMY belongs to the top of the industry, outperforming 93.43% of the companies in the same industry.
• The last Return On Invested Capital (18.94%) for HRMY is above the 3 year average (18.27%), which is a sign of increasing profitability.
• The Profit Margin of HRMY (20.36%) is better than 92.93% of its industry peers.
• In the last couple of years the Profit Margin of HRMY has grown nicely.
• HRMY has a better Operating Margin (29.09%) than 93.43% of its industry peers.
• HRMY has a Gross Margin of 78.06%. This is amongst the best in the industry. HRMY outperforms 84.34% of its industry peers.

How do we evaluate the setup for HRMY?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. HRMY scores a 8 out of 10:

HRMY has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 30.33. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 28.46, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of HRMY

Check the latest full technical report of HRMY for a complete technical analysis.

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.