Halozyme Therapeutics (HALO): Buy, Sell, or Hold Post Q3 Earnings?

Halozyme Therapeutics has had an impressive run over the past six months as its shares have beaten the S&P 500 by 24.3%. The stock now trades at $75.77, marking a 35.8% gain. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Is it too late to buy HALO? Find out in our full research report, it’s free for active Edge members.

Why Does Halozyme Therapeutics Spark Debate?

Known for transforming hours-long intravenous infusions into minutes-long subcutaneous injections, Halozyme Therapeutics (NASDAQ:HALO) develops and licenses its proprietary ENHANZE technology that enables subcutaneous delivery of injectable drugs that would otherwise require intravenous administration.

Two Positive Attributes:

1. Skyrocketing Revenue Shows Strong Momentum

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Halozyme Therapeutics grew its sales at an incredible 44.2% compounded annual growth rate. Its growth surpassed the average healthcare company and shows its offerings resonate with customers.

2. Excellent Free Cash Flow Margin Boosts Reinvestment Potential

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

Halozyme Therapeutics has shown terrific cash profitability, enabling it to reinvest, return capital to investors, and stay ahead of the competition while maintaining an ample cushion. The company’s free cash flow margin was among the best in the healthcare sector, averaging an eye-popping 46.1% over the last five years.

One Reason to be Careful:

Shrinking Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

Looking at the trend in its profitability, Halozyme Therapeutics’s adjusted operating margin decreased by 10.5 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its adjusted operating margin for the trailing 12 months was 59.3%.

Final Judgment

Halozyme Therapeutics has huge potential even though it has some open questions, and with its shares beating the market recently, the stock trades at 9.7× forward P/E (or $75.77 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More Than Halozyme Therapeutics

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.