NASDAQ:NBIX: a strong growth stock preparing for the next leg up?.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but NEUROCRINE BIOSCIENCES INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

What does the Growth looks like for NASDAQ:NBIX

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:NBIX boasts a 9 out of 10:

• The Earnings Per Share has grown by an impressive 232.69% over the past year.
• Measured over the past years, NBIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 66.75% on average per year.
• NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.01%.
• The Revenue has been growing by 55.91% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 50.12% on average over the next years. This is a very strong growth
• NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.42% yearly.

Evaluating Health: NASDAQ:NBIX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:NBIX has achieved a 7 out of 10:

• An Altman-Z score of 9.82 indicates that NBIX is not in any danger for bankruptcy at the moment.
• NBIX has a better Altman-Z score (9.82) than 90.32% of its industry peers.
• There is no outstanding debt for NBIX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• NBIX has a Current Ratio of 2.57. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.51 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Insights: NASDAQ:NBIX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NBIX was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 6.75%, NBIX belongs to the best of the industry, outperforming 95.99% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 9.52%, NBIX belongs to the top of the industry, outperforming 95.83% of the companies in the same industry.
• NBIX's Return On Invested Capital of 11.65% is amongst the best of the industry. NBIX outperforms 97.00% of its industry peers.
• The Profit Margin of NBIX (10.54%) is better than 95.66% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• Looking at the Operating Margin, with a value of 17.60%, NBIX belongs to the top of the industry, outperforming 97.00% of the companies in the same industry.
• NBIX's Gross Margin of 97.98% is amongst the best of the industry. NBIX outperforms 98.50% of its industry peers.

Why is NASDAQ:NBIX a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:NBIX currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is only medium, NBIX does present a nice setup opportunity. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 106.88, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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

Check the latest full fundamental report of NBIX for a complete fundamental analysis.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.