Exploring the Growth Potential of NASDAQ:NBIX as It Nears a Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted NEUROCRINE BIOSCIENCES INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Evaluating Growth: NASDAQ:NBIX

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 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.
• NBIX shows a strong growth in Revenue. In the last year, 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 44.96% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 16.53% on average over the next years. This is quite good.

How do we evaluate the Health for NASDAQ:NBIX?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, 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 11.89. This indicates that NBIX is financially healthy and has little risk of bankruptcy at the moment.
• NBIX has a better Altman-Z score (11.89) than 87.75% 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.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:NBIX, the assigned 9 is noteworthy for profitability:

• NBIX has a Return On Assets of 10.92%. This is amongst the best in the industry. NBIX outperforms 96.40% of its industry peers.
• NBIX has a better Return On Equity (14.19%) than 96.22% of its industry peers.
• NBIX has a better Return On Invested Capital (13.96%) than 96.94% of its industry peers.
• 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.
• Looking at the Profit Margin, with a value of 17.21%, NBIX belongs to the top of the industry, outperforming 96.40% of the companies in the same industry.
• In the last couple of years the Profit Margin of NBIX has grown nicely.
• NBIX's Operating Margin of 26.23% is amongst the best of the industry. NBIX outperforms 97.12% of its industry peers.
• NBIX's Operating Margin has improved in the last couple of years.
• NBIX's Gross Margin of 98.52% is amongst the best of the industry. NBIX outperforms 97.66% of its industry peers.

Looking at the Setup

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 7:

Besides having an excellent technical rating, NBIX also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry.

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

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.