HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY): a strong growth stock preparing for the next leg up?.

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

Growth Assessment of HRMY

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. HRMY has achieved a 9 out of 10:

• HRMY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.61% yearly.
• HRMY shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.80%.
• Measured over the past years, HRMY shows a very strong growth in Revenue. The Revenue has been growing by 160.13% on average per year.
• Based on estimates for the next years, HRMY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.44% on average per year.
• Based on estimates for the next years, HRMY will show a very strong growth in Revenue. The Revenue will grow by 20.92% on average per year.

Deciphering HRMY's Health Rating

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. HRMY was assigned a score of 8 for health:

• An Altman-Z score of 5.27 indicates that HRMY is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.27, HRMY belongs to the best of the industry, outperforming 82.38% of the companies in the same industry.
• The Debt to FCF ratio of HRMY is 0.82, which is an excellent value as it means it would take HRMY, only 0.82 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.82, HRMY belongs to the best of the industry, outperforming 96.37% of the companies in the same industry.
• A Debt/Equity ratio of 0.25 indicates that HRMY is not too dependend on debt financing.
• HRMY has a Current Ratio of 3.31. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.
• HRMY has a Quick Ratio of 3.27. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination for HRMY

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 HRMY, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 14.56%, HRMY belongs to the top of the industry, outperforming 96.37% of the companies in the same industry.
• HRMY has a better Return On Equity (22.07%) than 94.82% of its industry peers.
• HRMY's Return On Invested Capital of 18.94% is amongst the best of the industry. HRMY outperforms 94.30% of its industry peers.
• The last Return On Invested Capital (18.94%) for HRMY is above the 3 year average (18.27%), which is a sign of increasing profitability.
• The Profit Margin of HRMY (20.36%) is better than 92.23% of its industry peers.
• HRMY's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 29.09%, HRMY belongs to the top of the industry, outperforming 93.78% of the companies in the same industry.
• HRMY has a Gross Margin of 78.06%. This is amongst the best in the industry. HRMY outperforms 82.90% of its industry peers.

How does the Setup look for HRMY

ChartMill 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, HRMY exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is bad, HRMY 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 32.53, a Stop Loss order could be placed below this zone.

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

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

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

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.