Why NASDAQ:NBIX Is a Promising High-Growth Stock in the Midst of Consolidation.

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.

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.
• The Earnings Per Share has been growing by 70.09% on average over the past years. This is a very strong growth
• Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 23.99%.
• NBIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.13% yearly.
• Based on estimates for the next years, NBIX will show a very strong growth in Earnings Per Share. The EPS will grow by 44.72% on average per year.
• The Revenue is expected to grow by 15.24% on average over the next years. This is quite good.

Assessing Health for NASDAQ:NBIX

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 9.03 indicates that NBIX is not in any danger for bankruptcy at the moment.
• NBIX has a Altman-Z score of 9.03. This is amongst the best in the industry. NBIX outperforms 85.51% 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.
• 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.

What does the Profitability looks like for 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:

• Looking at the Return On Assets, with a value of 10.65%, NBIX belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
• The Return On Equity of NBIX (15.49%) is better than 97.21% of its industry peers.
• With an excellent Return On Invested Capital value of 12.56%, NBIX belongs to the best of the industry, outperforming 97.03% 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.
• Looking at the Profit Margin, with a value of 18.65%, NBIX belongs to the top of the industry, outperforming 97.56% of the companies in the same industry.
• NBIX's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 23.73%, NBIX belongs to the best of the industry, outperforming 97.56% of the companies in the same industry.
• NBIX's Operating Margin has improved in the last couple of years.
• The Gross Margin of NBIX (98.05%) is better than 98.08% of its industry peers.

Looking at the 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 9 setup rating, indicating its consolidation status in recent days and weeks.

NBIX has an excellent technical rating and 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 140.09. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 137.58, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of NBIX

For an up to date full technical analysis you can check the technical report of NBIX

Keep in mind

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.