NASDAQ:NBIX qualifies as a high growth stock and is consolidating.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but NEUROCRINE BIOSCIENCES INC has surfaced on our radar for growth with base formation, warranting further examination.

Understanding NASDAQ:NBIX's Growth Score

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:NBIX has earned a 9 for growth:

• The Earnings Per Share has grown by an impressive 100.54% over the past year.
• NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 70.09% yearly.
• Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 25.72%.
• 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
• The Revenue is expected to grow by 15.24% on average over the next years. This is quite good.

Understanding NASDAQ:NBIX's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:NBIX has earned a 8 out of 10:

• NBIX has an Altman-Z score of 11.13. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of NBIX (11.13) is better than 85.89% 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 4.37. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
• NBIX has a Quick Ratio of 4.26. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis for 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:

• With an excellent Return On Assets value of 10.92%, NBIX belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 14.19%, NBIX belongs to the top of the industry, outperforming 96.65% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 13.96%, NBIX belongs to the top of the industry, outperforming 97.00% of the companies in the same industry.
• The last Return On Invested Capital (13.96%) for NBIX is above the 3 year average (9.89%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 17.21%, NBIX belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• With an excellent Operating Margin value of 26.23%, NBIX belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
• NBIX's Operating Margin has improved in the last couple of years.
• NBIX has a Gross Margin of 98.52%. This is amongst the best in the industry. NBIX outperforms 97.71% of its industry peers.

How do we evaluate the setup for NASDAQ:NBIX?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:NBIX is 8:

Although the technical rating is only medium, NBIX does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 126.60. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for NBIX in the last couple of days, which is a good sign. 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.