NASDAQ:NBIX, a strong growth stock, setting up for a breakout.

In this article we will dive into NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as a possible candidate for growth investing. Investors should always do their own research, but we noticed NEUROCRINE BIOSCIENCES INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Evaluating Growth: NASDAQ:NBIX

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:NBIX, the assigned 9 reflects its growth potential:

• NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.32%, 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 28.46%.
• 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 51.63% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 17.00% on average over the next years. This is quite good.

Assessing Health for NASDAQ:NBIX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:NBIX, the assigned 7 for health provides valuable insights:

• NBIX has an Altman-Z score of 10.38. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of NBIX (10.38) is better than 86.13% 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.
• A Current Ratio of 2.39 indicates that NBIX has no problem at all paying its short term obligations.
• NBIX has a Quick Ratio of 2.34. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

Understanding 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:

• Looking at the Return On Assets, with a value of 6.71%, NBIX belongs to the top of the industry, outperforming 96.79% of the companies in the same industry.
• With an excellent Return On Equity value of 9.54%, NBIX belongs to the best of the industry, outperforming 95.77% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 12.95%, NBIX belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
• The last Return On Invested Capital (12.95%) for NBIX is above the 3 year average (12.37%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 10.71%, NBIX belongs to the best of the industry, outperforming 96.28% of the companies in the same industry.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• NBIX's Operating Margin of 19.50% is amongst the best of the industry. NBIX outperforms 96.79% of its industry peers.
• The Gross Margin of NBIX (97.82%) is better than 97.29% of its industry peers.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:NBIX currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

NBIX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 132.49. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 130.57, 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 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.