Is NASDAQ:NBIX on the Verge of a Major Breakout as a Strong Growth Stock?

Exploring Growth Potential: NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and NEUROCRINE BIOSCIENCES INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected NEUROCRINE BIOSCIENCES INC on our screen for growth with base formation, suggesting it merits a closer look.

How We Gauge Growth 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:

• The Earnings Per Share has grown by an impressive 505.00% over the past year.
• 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.
• The Revenue has grown by 23.99% in the past year. This is a very strong growth!
• Measured over the past years, NBIX shows a very strong growth in Revenue. The Revenue has been growing by 33.13% on average per year.
• The Earnings Per Share is expected to grow by 42.64% 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 15.04% on average per year.

Understanding NASDAQ:NBIX's Health Score

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:NBIX, the assigned 7 reflects its health status:

• An Altman-Z score of 8.92 indicates that NBIX is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 8.92, NBIX belongs to the best of the industry, outperforming 84.06% 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 2.52. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.47 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Assessment of NASDAQ:NBIX

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 9 for profitability:

• Looking at the Return On Assets, with a value of 10.65%, NBIX belongs to the top of the industry, outperforming 97.23% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 15.49%, NBIX belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 12.56%, NBIX belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
• The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(12.56%), indicating increased profibility in the last year.
• NBIX has a better Profit Margin (18.65%) than 97.57% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• NBIX's Operating Margin of 23.73% is amongst the best of the industry. NBIX outperforms 97.40% of its industry peers.
• In the last couple of years the Operating Margin of NBIX has grown nicely.
• NBIX has a better Gross Margin (98.05%) than 98.27% of its industry peers.

Why is NASDAQ:NBIX a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:NBIX has a 8 as its setup rating:

Although the technical rating is only medium, NBIX does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 134.93, 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.

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.