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

Last update: Sep 22, 2023

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted NEUROCRINE BIOSCIENCES INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Assessment of NASDAQ:NBIX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:NBIX was assigned a score of 9 for growth:

The Earnings Per Share has grown by an impressive 232.69% over the past year.
Measured over the past years, NBIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 66.75% on average per year.
Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 29.01%.
Measured over the past years, NBIX shows a very strong growth in Revenue. The Revenue has been growing by 55.91% on average per year.
Based on estimates for the next years, NBIX will show a very strong growth in Earnings Per Share. The EPS will grow by 48.84% on average per year.
NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.72% yearly.

Assessing Health for NASDAQ:NBIX

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:NBIX was assigned a score of 7 for health:

An Altman-Z score of 9.94 indicates that NBIX is not in any danger for bankruptcy at the moment.
The Altman-Z score of NBIX (9.94) is better than 88.16% of its industry peers.
NBIX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
NBIX has a Current Ratio of 2.57. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
NBIX has a Quick Ratio of 2.51. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NASDAQ:NBIX

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:NBIX scores a 8 out of 10:

NBIX has a Return On Assets of 6.75%. This is amongst the best in the industry. NBIX outperforms 96.23% of its industry peers.
With an excellent Return On Equity value of 9.52%, NBIX belongs to the best of the industry, outperforming 95.88% of the companies in the same industry.
NBIX has a better Return On Invested Capital (11.65%) than 97.08% of its industry peers.
The Profit Margin of NBIX (10.54%) is better than 95.54% of its industry peers.
In the last couple of years the Profit Margin of NBIX has grown nicely.
Looking at the Operating Margin, with a value of 17.60%, NBIX belongs to the top of the industry, outperforming 96.91% of the companies in the same industry.
NBIX has a Gross Margin of 97.98%. This is amongst the best in the industry. NBIX outperforms 98.11% of its industry peers.

How do we evaluate the setup for NASDAQ:NBIX?

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:NBIX is 8:

Besides having an excellent technical rating, NBIX also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 111.29, 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 NBIX contains the most current fundamental analsysis.

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

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.