Trade-Ideas LLC identified

Neurocrine Biosciences

(

NBIX

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Neurocrine Biosciences as such a stock due to the following factors:

  • NBIX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.9 million.
  • NBIX has traded 400,185 shares today.
  • NBIX is trading at 19.15 times the normal volume for the stock at this time of day.
  • NBIX is trading at a new high 8.01% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on NBIX:

Neurocrine Biosciences, Inc. discovers and develops pharmaceuticals for the treatment of neurological and endocrine-related diseases and disorders in the United States. Currently there are 7 analysts that rate Neurocrine Biosciences a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Neurocrine Biosciences has been 1.1 million shares per day over the past 30 days. Neurocrine has a market cap of $4.0 billion and is part of the health care sector and drugs industry. The stock has a beta of -0.01 and a short float of 11% with 5.69 days to cover. Shares are down 18.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Neurocrine Biosciences as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • NBIX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 17.04, which clearly demonstrates the ability to cover short-term cash needs.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The revenue fell significantly faster than the industry average of 17.9%. Since the same quarter one year prior, revenues fell by 24.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, NEUROCRINE BIOSCIENCES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$29.21 million or 60.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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