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These Fundamentals Make Heron Therapeutics, Inc. (NASDAQ:HRTX) Truly Worth Looking At

Simply Wall St

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Heron Therapeutics, Inc. (NASDAQ:HRTX) 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 HRTX, it is a company with robust financial health as well as a buoyant future outlook. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on Heron Therapeutics here.

Flawless balance sheet with high growth potential

Investors in search for stocks with room to flourish should look no further than HRTX, with its expected earnings growth of 76%. The optimistic bottom-line growth is supported by a similarly outstanding revenue growth over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. HRTX's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that HRTX manages its cash and cost levels well, which is a key determinant of the company’s health. With a debt-to-equity ratio of 1.5%, HRTX’s debt level is low. This means the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqCM:HRTX Past and Future Earnings, July 9th 2019

Next Steps:

For Heron Therapeutics, there are three essential aspects you should further research:

  1. Historical Performance: What has HRTX'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.
  2. Valuation: What is HRTX 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 HRTX is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of HRTX? 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 editorial-team@simplywallst.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.