NASDAQ:NBIX—A High-Growth Stock Gearing Up for Its Next Upward Move.

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.

ChartMill's Evaluation of Growth

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 91.33%, which is quite impressive.
• NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.09% yearly.
• The Revenue has grown by 26.69% in the past year. This is a very strong growth!
• The Revenue has been growing by 33.13% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 44.72% on average over the next years. This is a very strong growth
• NBIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.24% yearly.

Unpacking NASDAQ:NBIX's Health Rating

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 8 for health provides valuable insights:

• NBIX has an Altman-Z score of 12.63. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• NBIX has a better Altman-Z score (12.63) than 89.28% 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 4.19 indicates that NBIX has no problem at all paying its short term obligations.
• NBIX has a Quick Ratio of 4.08. 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 better Return On Assets (10.26%) than 97.36% of its industry peers.
• NBIX's Return On Equity of 13.52% is amongst the best of the industry. NBIX outperforms 96.84% of its industry peers.
• The Return On Invested Capital of NBIX (13.81%) is better than 97.19% of its industry peers.
• The 3 year average ROIC (9.89%) for NBIX is below the current ROIC(13.81%), indicating increased profibility in the last year.
• NBIX's Profit Margin of 16.00% is amongst the best of the industry. NBIX outperforms 97.54% of its industry peers.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• Looking at the Operating Margin, with a value of 25.70%, NBIX belongs to the top of the industry, outperforming 98.07% of the companies in the same industry.
• In the last couple of years the Operating Margin of NBIX has grown nicely.
• NBIX has a Gross Margin of 98.28%. This is amongst the best in the industry. NBIX outperforms 97.89% of its industry peers.

How do we evaluate the setup for NASDAQ:NBIX?

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

NBIX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 143.25, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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.