Ascendis Pharma (ASND) is Tuesday’s pick for IBD 50 Stocks To Watch as it works its way up to a buy point in a flat base. The stock’s superior sales growth helped it make the elite list of growth stocks.

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The Danish biotech develops treatments for cancers, endocrine diseases and other rare diseases.

JPMorgan raised its price target to 167 from 165 and maintained its overweight rating on the growth stock on Tuesday.

Biotech Growth Stock Climbing In A Base

Ascendis Pharma is in a second-stage flat base with a 161 buy point.

The growth stock is above its 50-day moving average after several tests of the line as the base develops. It reclaimed its 21-day exponential moving average on March 26.

Shares have gained over 20% in 2024 thus far. The stock holds a 95 IBD Relative Strength Rating.

Huge Sales Growth Expected To Continue

Ascendis Pharma hasn’t had a profitable year since 2018, according to MarketSurge. That’s common with biotech companies, because they invest heavily in research and development and may spend years working on products before they reach their markets.

Its quarterly losses are diminishing, trending in the right direction.

But it has shown tremendous sales growth. Revenue growth exploded with a 520% rise in its fourth quarter, reported on Feb. 7. Sales soared 239% to 701% the previous four quarters.

Quarterly sales are expected to grow 136% in the first quarter, with 90% and 158% estimates in the following two quarters, according to MarketSurge.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.

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