2-Star Stocks Poised to Plunge: Neurocrine Biosciences?

Market-lagging returns could be written in these stars.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Sep 11, 2012 at 12:00AM

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Neurocrine Biosciences (Nasdaq: NBIX) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Neurocrine's business and see what CAPS investors are saying about the stock right now.

Neurocrine facts

Headquarters (Founded) San Diego, Calif. (1992)
Market Cap $522.6 million
Industry Biotechnology
Trailing-12-Month Revenue $74.6 million
Management CEO Kevin Gorman
CFO Timothy Coughlin
Trailing-12-Month Return on Equity 36.8%
Cash/Debt $177.5 million / $0
Competitors Abbott Labs
Eli Lilly

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 14% of the 360 members who have rated Neurocrine believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star zzlangerhans, tapped Neurocrine as "dead money" in the short run:

Neurocrine has been turning in solid pipeline progress for several years now but they haven't had much success holding gains in the share price. Now that the phase III trial of [E]lagolix is in progress I expect at least a year before all 875 patients are enrolled and possibly another year before topline data is released. I'm not expecting any other catalysts in the near future and if previous patterns hold the share price will drift back below [$7] before the runup into phase III data.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.