NASDAQ:NBIX: 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 NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but NEUROCRINE BIOSCIENCES INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Analysis for NASDAQ:NBIX

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:NBIX has earned a 9 for growth:

• The Earnings Per Share has grown by an impressive 232.69% over the past year.
• NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.75% yearly.
• Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 29.01%.
• The Revenue has been growing by 55.91% on average over the past years. This is a very strong growth!
• 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.
• The Revenue is expected to grow by 15.72% on average over the next years. This is quite good.

How We Gauge Health for NASDAQ:NBIX

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:NBIX has earned a 7 out of 10:

• An Altman-Z score of 10.06 indicates that NBIX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of NBIX (10.06) is better than 88.08% of its industry peers.
• There is no outstanding debt for NBIX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.

A Closer Look at Profitability for NASDAQ:NBIX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 6.75%, NBIX belongs to the top of the industry, outperforming 96.19% of the companies in the same industry.
• NBIX's Return On Equity of 9.52% is amongst the best of the industry. NBIX outperforms 95.86% of its industry peers.
• NBIX has a better Return On Invested Capital (11.65%) than 97.02% of its industry peers.
• NBIX has a Profit Margin of 10.54%. This is amongst the best in the industry. NBIX outperforms 95.53% of its industry peers.
• NBIX's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 17.60%, NBIX belongs to the top of the industry, outperforming 96.85% of the companies in the same industry.
• With an excellent Gross Margin value of 97.98%, NBIX belongs to the best of the industry, outperforming 98.18% of the companies in the same industry.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:NBIX currently has a 8 as setup rating:

NBIX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 113.69, 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.

Check the latest full technical report of NBIX for a complete technical analysis.

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.