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.

Understanding NASDAQ:NBIX's Growth Score

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:NBIX has received 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.
• 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.
• 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
• Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 15.72% on average per year.

How do we evaluate the Health for NASDAQ:NBIX?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 7 out of 10:

• NBIX has an Altman-Z score of 10.03. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.03, NBIX belongs to the top of the industry, outperforming 89.75% 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.
• 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.

Understanding NASDAQ:NBIX's Profitability

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:

• With an excellent Return On Assets value of 6.75%, NBIX belongs to the best of the industry, outperforming 96.03% of the companies in the same industry.
• NBIX's Return On Equity of 9.52% is amongst the best of the industry. NBIX outperforms 95.87% 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.
• NBIX has a better Profit Margin (10.54%) than 95.70% of its industry peers.
• NBIX's Profit Margin has improved in the last couple of years.
• NBIX's Operating Margin of 17.60% is amongst the best of the industry. NBIX outperforms 96.86% of its industry peers.
• NBIX's Gross Margin of 97.98% is amongst the best of the industry. NBIX outperforms 98.35% of its industry peers.

How do we evaluate the setup for NASDAQ:NBIX?

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:

Besides having an excellent technical rating, NBIX also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 115.46. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 113.48, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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

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

Our latest full technical report of NBIX contains the most current technical analsysis.

Disclaimer

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.