Acceleron Pharma Inc. (NASDAQ:XLRN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of XLRN, it is a company with robust financial health as well as a excellent future outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Acceleron Pharma here.
Flawless balance sheet with high growth potential
One reason why investors are attracted to XLRN is its notable earnings growth potential in the near future of 44%. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. XLRN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that XLRN manages its cash and cost levels well, which is an important determinant of the company’s health. Investors should not worry about XLRN’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$2.2b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
For Acceleron Pharma, I’ve compiled three fundamental aspects you should further examine:
- Historical Performance: What has XLRN’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is XLRN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether XLRN is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of XLRN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.