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

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.

Evaluating Growth: NASDAQ:HALO

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 9 out of 10:

• The Earnings Per Share has grown by an impressive 34.57% over the past year.
• The Earnings Per Share has been growing by 45.64% on average over the past years. This is a very strong growth
• The Revenue has grown by 25.63% in the past year. This is a very strong growth!
• Measured over the past years, HALO shows a very strong growth in Revenue. The Revenue has been growing by 40.42% on average per year.
• The Earnings Per Share is expected to grow by 25.47% on average over the next years. This is a very strong growth
• HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.95% yearly.

Health Examination for NASDAQ:HALO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:HALO, the assigned 7 reflects its health status:

• An Altman-Z score of 4.25 indicates that HALO is not in any danger for bankruptcy at the moment.
• HALO has a Altman-Z score of 4.25. This is in the better half of the industry: HALO outperforms 78.22% of its industry peers.
• HALO has a debt to FCF ratio of 3.54. This is a good value and a sign of high solvency as HALO would need 3.54 years to pay back of all of its debts.
• HALO has a Debt to FCF ratio of 3.54. This is amongst the best in the industry. HALO outperforms 96.52% of its industry peers.
• A Current Ratio of 6.64 indicates that HALO has no problem at all paying its short term obligations.
• HALO has a Current ratio of 6.64. This is in the better half of the industry: HALO outperforms 63.24% of its industry peers.
• HALO has a Quick Ratio of 5.36. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.

Exploring NASDAQ:HALO's Profitability

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:HALO was assigned a score of 7 for profitability:

• HALO has a better Return On Assets (17.31%) than 99.30% of its industry peers.
• The Return On Equity of HALO (179.30%) is better than 100.00% of its industry peers.
• The Return On Invested Capital of HALO (18.09%) is better than 98.43% of its industry peers.
• HALO had an Average Return On Invested Capital over the past 3 years of 17.78%. This is above the industry average of 14.04%.
• The last Return On Invested Capital (18.09%) for HALO is above the 3 year average (17.78%), which is a sign of increasing profitability.
• HALO has a better Profit Margin (36.95%) than 98.95% of its industry peers.
• The Operating Margin of HALO (44.25%) is better than 99.48% of its industry peers.
• HALO's Gross Margin of 78.51% is amongst the best of the industry. HALO outperforms 86.59% of its industry peers.

Looking at the 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:HALO currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, HALO also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 56.24. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 51.93, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

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.