Is NASDAQ:HALO on the Verge of a Major Breakout as a Strong Growth Stock?

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.

Unpacking NASDAQ:HALO's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:HALO has received a 9 out of 10:

• The Earnings Per Share has grown by an impressive 55.33% over the past year.
• HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.
• HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.36%.
• The Revenue has been growing by 40.42% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 25.94% on average over the next years. This is a very strong growth
• Based on estimates for the next years, HALO will show a quite strong growth in Revenue. The Revenue will grow by 16.59% on average per year.

Health Analysis for NASDAQ:HALO

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:HALO, the assigned 7 for health provides valuable insights:

• HALO has an Altman-Z score of 4.26. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.26, HALO is in the better half of the industry, outperforming 78.41% of the companies in the same industry.
• The Debt to FCF ratio of HALO is 3.83, which is a good value as it means it would take HALO, 3.83 years of fcf income to pay off all of its debts.
• HALO's Debt to FCF ratio of 3.83 is amongst the best of the industry. HALO outperforms 94.16% of its industry peers.
• HALO has a Current Ratio of 10.36. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
• HALO has a Current ratio of 10.36. This is amongst the best in the industry. HALO outperforms 82.30% of its industry peers.
• HALO has a Quick Ratio of 9.15. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
• With a decent Quick ratio value of 9.15, HALO is doing good in the industry, outperforming 78.23% of the companies in the same industry.

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 (18.53%) than 98.58% of its industry peers.
• HALO's Return On Equity of 86.69% is amongst the best of the industry. HALO outperforms 99.65% of its industry peers.
• The Return On Invested Capital of HALO (19.23%) is better than 98.23% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 13.59%.
• The 3 year average ROIC (17.78%) for HALO is below the current ROIC(19.23%), indicating increased profibility in the last year.
• HALO has a better Profit Margin (41.43%) than 98.76% of its industry peers.
• The Operating Margin of HALO (50.35%) is better than 100.00% of its industry peers.
• Looking at the Gross Margin, with a value of 82.09%, HALO belongs to the top of the industry, outperforming 87.26% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:HALO?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:HALO has a 8 as its setup rating:

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 resistance zone just above the current price starting at 48.61. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 48.59, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

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.