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

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.

A Closer Look at Growth for NASDAQ:NBIX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:NBIX was assigned a score of 9 for growth:

• NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.17%, 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 70.09% on average per year.
• NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.76%.
• The Revenue has been growing by 33.13% 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 42.64% yearly.
• NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.87% yearly.

What does the Health looks like for NASDAQ:NBIX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:NBIX was assigned a score of 7 for health:

• An Altman-Z score of 9.73 indicates that NBIX is not in any danger for bankruptcy at the moment.
• NBIX has a better Altman-Z score (9.73) than 86.18% 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 2.45 indicates that NBIX has no problem at all paying its short term obligations.
• NBIX has a Quick Ratio of 2.40. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

Profitability Assessment of NASDAQ:NBIX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:NBIX has achieved a 9:

• NBIX has a Return On Assets of 7.68%. This is amongst the best in the industry. NBIX outperforms 96.76% of its industry peers.
• With an excellent Return On Equity value of 11.19%, NBIX belongs to the best of the industry, outperforming 96.42% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 11.21%, NBIX belongs to the top of the industry, outperforming 96.93% of the companies in the same industry.
• The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(11.21%), indicating increased profibility in the last year.
• The Profit Margin of NBIX (13.23%) is better than 96.93% 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 20.92%, NBIX belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
• NBIX's Operating Margin has improved in the last couple of years.
• NBIX's Gross Margin of 97.90% is amongst the best of the industry. NBIX outperforms 98.29% of its industry peers.

Why is NASDAQ:NBIX a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:NBIX this score is currently 7:

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 143.04. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 142.96, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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.

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.