NASDAQ:HALO—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

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

Deciphering NASDAQ:HALO's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:HALO scores a 8 out of 10:

• HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.91%, which is quite impressive.
• HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.34% yearly.
• HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 58.71%.
• Measured over the past years, HALO shows a quite strong growth in Revenue. The Revenue has been growing by 15.83% on average per year.
• Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 23.83% on average per year.
• The Revenue is expected to grow by 17.98% on average over the next years. This is quite good.

Health Assessment of NASDAQ:HALO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has received a 7 out of 10:

• An Altman-Z score of 3.38 indicates that HALO is not in any danger for bankruptcy at the moment.
• HALO has a better Altman-Z score (3.38) than 76.66% of its industry peers.
• The Debt to FCF ratio of HALO (5.11) is better than 95.03% of its industry peers.
• HALO has a Current Ratio of 6.58. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 5.44 indicates that HALO has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:HALO, the assigned 8 is noteworthy for profitability:

• HALO has a Return On Assets of 12.91%. This is amongst the best in the industry. HALO outperforms 97.52% of its industry peers.
• With an excellent Return On Equity value of 154.74%, HALO belongs to the best of the industry, outperforming 99.67% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 14.76%, HALO belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for HALO is significantly above the industry average of 12.00%.
• The last Return On Invested Capital (14.76%) for HALO is well below the 3 year average (36.79%), which needs to be investigated, but indicates that HALO had better years and this may not be a problem.
• With an excellent Profit Margin value of 30.21%, HALO belongs to the best of the industry, outperforming 97.52% of the companies in the same industry.
• HALO's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 39.79%, HALO belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
• HALO's Operating Margin has improved in the last couple of years.
• HALO has a better Gross Margin (77.42%) than 85.60% of its industry peers.

How does the Setup look for NASDAQ:HALO

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:HALO exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is bad, HALO does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 38.50, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of HALO contains the most current fundamental analsysis.

For an up to date full technical analysis you can check the technical report of HALO

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.