Exploring the Growth Potential of NASDAQ:NBIX as It Nears a Breakout.

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.

Exploring NASDAQ:NBIX's Growth

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. NASDAQ:NBIX has achieved a 9 out of 10:

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

Understanding NASDAQ:NBIX's Health

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 10.12 indicates that NBIX is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.12, NBIX belongs to the top of the industry, outperforming 88.58% of the companies in the same industry.
• 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.
• A Current Ratio of 2.57 indicates that NBIX has no problem at all paying 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.

Exploring NASDAQ:NBIX's Profitability

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 NASDAQ:NBIX, the assigned 8 is noteworthy for profitability:

• NBIX's Return On Assets of 6.75% is amongst the best of the industry. NBIX outperforms 96.19% of its industry peers.
• NBIX has a better Return On Equity (9.52%) than 95.86% of its industry peers.
• NBIX's Return On Invested Capital of 11.65% is amongst the best of the industry. NBIX outperforms 97.02% of its industry peers.
• The Profit Margin of NBIX (10.54%) is better than 95.53% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• The Operating Margin of NBIX (17.60%) is better than 96.85% of its industry peers.
• NBIX has a better Gross Margin (97.98%) than 98.18% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:NBIX scores a 8 out of 10:

NBIX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 113.80, 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 NBIX for a complete fundamental analysis.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.