Harmony Biosciences Holdings ([NASDAQ:HRMY](https://www.chartmill.com/stock/quote/HRMY/profile)) – A Strong Growth Stock with Technical Breakout Potential

Harmony Biosciences Holdings (NASDAQ:HRMY) was identified by our screener as a strong growth stock with a favorable technical setup. The company, focused on treatments for rare neurological disorders, combines solid fundamentals with a promising chart pattern. Below, we examine why HRMY stands out.

Fundamental Strengths

• Growth Potential: HRMY has demonstrated strong revenue growth, with a 20.6% increase over the past year and an impressive 160% annual growth rate over multiple years. Earnings per share (EPS) are expected to grow by nearly 37% annually in the coming years.
• Profitability: The company maintains a healthy profit margin of 20.5%, outperforming 93% of its pharmaceutical industry peers. Its return on equity (21.2%) and return on invested capital (18.1%) are also well above industry averages.
• Financial Health: With a low debt-to-equity ratio (0.22) and strong liquidity (current ratio of 3.67), HRMY is in a stable financial position.
• Attractive Valuation: Trading at a forward P/E of 7.77, HRMY appears undervalued compared to both industry peers and the broader market.

Technical Setup

• Bullish Trend: Both short-term and long-term trends are positive, with recent price action forming a bull flag pattern—a potential continuation signal after a prior uptrend.
• Support and Resistance: Key support lies near $33, while resistance is seen around $35. A breakout above $35 could signal further upside.
• Relative Strength: HRMY has outperformed 80% of pharmaceutical stocks, indicating strong sector momentum.

For a deeper look, review the full fundamental analysis or the technical report.

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

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.