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

Last update: Nov 24, 2023

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

Analyzing Growth Metrics

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:HALO boasts a 8 out of 10:

The Earnings Per Share has grown by an nice 12.96% 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.
Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 34.46%.
HALO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.83% yearly.
Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.80% on average per year.
Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 18.14% on average per year.

Understanding NASDAQ:HALO's Health Score

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:HALO has earned a 7 out of 10:

HALO has an Altman-Z score of 3.54. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
HALO has a better Altman-Z score (3.54) than 78.13% of its industry peers.
HALO has a better Debt to FCF ratio (4.24) than 94.99% of its industry peers.
A Current Ratio of 7.63 indicates that HALO has no problem at all paying its short term obligations.
HALO has a Current ratio of 7.63. This is in the better half of the industry: HALO outperforms 66.44% of its industry peers.
A Quick Ratio of 6.51 indicates that HALO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 6.51, HALO is in the better half of the industry, outperforming 61.10% of the companies in the same industry.

Exploring NASDAQ:HALO's Profitability

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, NASDAQ:HALO has achieved a 8:

HALO's Return On Assets of 13.42% is amongst the best of the industry. HALO outperforms 98.66% of its industry peers.
HALO has a better Return On Equity (101.90%) than 99.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.39%, HALO belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is significantly above the industry average of 12.90%.
The last Return On Invested Capital (14.39%) 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 32.52%, HALO belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
In the last couple of years the Profit Margin of HALO has grown nicely.
HALO has a Operating Margin of 40.34%. This is amongst the best in the industry. HALO outperforms 98.66% of its industry peers.
HALO's Operating Margin has improved in the last couple of years.
The Gross Margin of HALO (76.66%) is better than 85.31% of its industry peers.

How do we evaluate the setup for NASDAQ:HALO?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:HALO is 7:

Although the technical rating is only medium, HALO does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 40.10, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

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.