Neurocrine Biosciences (NASDAQ:NBIX) Shareholders Have Enjoyed An Impressive 102% Share Price Gain

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) stock is up an impressive 102% over the last five years. On the other hand, the stock price has retraced 5.3% in the last week. But this could be related to the soft market, with stocks selling off around 3.4% in the last week.

Check out our latest analysis for Neurocrine Biosciences

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last half decade, Neurocrine Biosciences became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that Neurocrine Biosciences has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Neurocrine Biosciences shareholders gained a total return of 15% during the year. Unfortunately this falls short of the market return. If we look back over five years, the returns are even better, coming in at 15% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Neurocrine Biosciences better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Neurocrine Biosciences you should be aware of.

Of course Neurocrine Biosciences may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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