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

In this article, we'll take a closer look at NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) as a potential candidate for growth investing. While it's important for investors to conduct their own research, NEUROCRINE BIOSCIENCES INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Analysis for NASDAQ:NBIX

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:NBIX scores a 9 out of 10:

• 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.
• NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.75% yearly.
• NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.46%.
• The Revenue has been growing by 55.91% on average over the past years. This is a very strong growth!
• NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.63% yearly.
• Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 17.43% on average per year.

A Closer Look at Health for NASDAQ:NBIX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:NBIX scores a 7 out of 10:

• NBIX has an Altman-Z score of 11.24. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of NBIX (11.24) is better than 87.12% 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.
• 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 assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NBIX was assigned a score of 8 for profitability:

• The Return On Assets of NBIX (6.71%) is better than 96.61% of its industry peers.
• The Return On Equity of NBIX (9.54%) is better than 95.76% of its industry peers.
• NBIX's Return On Invested Capital of 12.95% is amongst the best of the industry. NBIX outperforms 97.12% of its industry peers.
• The 3 year average ROIC (12.37%) for NBIX is below the current ROIC(12.95%), indicating increased profibility in the last year.
• NBIX has a Profit Margin of 10.71%. This is amongst the best in the industry. NBIX outperforms 96.27% of its industry peers.
• NBIX's Profit Margin has improved in the last couple of years.
• NBIX has a better Operating Margin (19.50%) than 96.78% of its industry peers.
• NBIX's Gross Margin of 97.82% is amongst the best of the industry. NBIX outperforms 97.46% of its industry peers.

Why is NASDAQ:NBIX a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:NBIX exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

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. There is a resistance zone just above the current price starting at 142.97. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 141.73, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

Disclaimer

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.