Why NASDAQ:HALO Is a Promising High-Growth Stock in the Midst of Consolidation.

Last update: Oct 6, 2023

In this article we will dive into HALOZYME THERAPEUTICS INC (NASDAQ:HALO) as a possible candidate for growth investing. Investors should always do their own research, but we noticed HALOZYME THERAPEUTICS INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Understanding NASDAQ:HALO's Growth Score

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 NASDAQ:HALO, the assigned 8 reflects its growth potential:

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

Health Assessment of NASDAQ:HALO

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:HALO was assigned a score of 7 for health:

An Altman-Z score of 3.32 indicates that HALO is not in any danger for bankruptcy at the moment.
The Altman-Z score of HALO (3.32) is better than 76.04% of its industry peers.
HALO has a Debt to FCF ratio of 5.11. This is amongst the best in the industry. HALO outperforms 95.01% of its industry peers.
A Current Ratio of 6.58 indicates that HALO has no problem at all paying its short term obligations.
HALO has a Quick Ratio of 5.44. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

Evaluating Profitability: NASDAQ:HALO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 8 out of 10:

HALO has a Return On Assets of 12.91%. This is amongst the best in the industry. HALO outperforms 97.50% of its industry peers.
HALO's Return On Equity of 154.74% is amongst the best of the industry. HALO outperforms 99.67% of its industry peers.
HALO has a better Return On Invested Capital (14.76%) than 98.17% of its industry peers.
HALO had an Average Return On Invested Capital over the past 3 years of 36.79%. This is significantly above the industry average of 12.00%.
The 3 year average ROIC (36.79%) for HALO is well above the current ROIC(14.76%). The reason for the recent decline needs to be investigated.
The Profit Margin of HALO (30.21%) is better than 97.50% of its industry peers.
In the last couple of years the Profit Margin of HALO has grown nicely.
HALO has a better Operating Margin (39.79%) than 98.50% of its industry peers.
In the last couple of years the Operating Margin of HALO has grown nicely.
HALO's Gross Margin of 77.42% is amongst the best of the industry. HALO outperforms 85.69% of its industry peers.

Why is NASDAQ:HALO a setup?

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. NASDAQ:HALO scores a 8 out of 10:

HALO has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 37.64, a Stop Loss order could be placed below this zone.

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

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

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

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.