NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX)—A High-Growth Stock Gearing Up for Its Next Upward Move.

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 NBIX's Growth

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. NBIX scores a 9 out of 10:

• NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.95%, which is quite impressive.
• NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 58.39% yearly.
• Looking at the last year, NBIX shows a very strong growth in Revenue. The Revenue has grown by 24.81%.
• The Revenue has been growing by 24.48% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 38.49% 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 12.91% yearly.

Health Analysis for NBIX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NBIX has received a 8 out of 10:

• An Altman-Z score of 7.62 indicates that NBIX is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 7.62, NBIX belongs to the top of the industry, outperforming 85.76% 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 3.40 indicates that NBIX has no problem at all paying its short term obligations.
• NBIX has a Quick Ratio of 3.28. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for NBIX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NBIX was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 9.18%, NBIX belongs to the best of the industry, outperforming 95.61% of the companies in the same industry.
• NBIX's Return On Equity of 13.18% is amongst the best of the industry. NBIX outperforms 95.08% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 13.20%, NBIX belongs to the top of the industry, outperforming 96.31% of the companies in the same industry.
• The 3 year average ROIC (11.40%) for NBIX is below the current ROIC(13.20%), indicating increased profibility in the last year.
• NBIX has a better Profit Margin (14.49%) than 95.61% of its industry peers.
• NBIX's Profit Margin has improved in the last couple of years.
• NBIX's Operating Margin of 24.75% is amongst the best of the industry. NBIX outperforms 96.84% of its industry peers.
• NBIX has a better Gross Margin (98.56%) than 97.89% of its industry peers.

Why is NBIX a setup?

ChartMill 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, 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. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 112.50, a Stop Loss order could be placed below this zone.

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

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

Our latest full technical report of NBIX contains the most current technical analsysis.

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.