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

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.

Deciphering NASDAQ:NBIX's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NBIX has received a 9 out of 10:

• The Earnings Per Share has grown by an impressive 91.33% 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.
• NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.69%.
• 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 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.

Health Examination for NASDAQ:NBIX

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:

• An Altman-Z score of 10.18 indicates that NBIX is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 10.18, NBIX belongs to the top of the industry, outperforming 86.62% of the companies in the same industry.
• 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.
• A Quick Ratio of 4.08 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Insights: NASDAQ:NBIX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 9 out of 10:

• NBIX's Return On Assets of 10.26% is amongst the best of the industry. NBIX outperforms 96.83% of its industry peers.
• NBIX's Return On Equity of 13.52% is amongst the best of the industry. NBIX outperforms 96.30% of its industry peers.
• NBIX has a Return On Invested Capital of 13.81%. This is amongst the best in the industry. NBIX outperforms 96.83% 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.
• Looking at the Profit Margin, with a value of 16.00%, NBIX belongs to the top of the industry, outperforming 96.83% of the companies in the same industry.
• NBIX's Profit Margin has improved in the last couple of years.
• NBIX has a Operating Margin of 25.70%. This is amongst the best in the industry. NBIX outperforms 97.71% of its industry peers.
• NBIX's Operating Margin has improved in the last couple of years.
• NBIX has a better Gross Margin (98.28%) than 97.54% 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.

Although the technical rating is bad, NBIX does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 112.40, a Stop Loss order could be placed below this zone.

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

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

Check the latest full technical report of NBIX for a complete technical analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.