Exploring the Growth Potential of NASDAQ:CPRX as It Nears a Breakout.

In this article, we'll take a closer look at CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) as a potential candidate for growth investing. While it's important for investors to conduct their own research, CATALYST PHARMACEUTICALS INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Evaluating Growth: NASDAQ:CPRX

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:CPRX boasts a 8 out of 10:

• CPRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.48% yearly.
• The Revenue has grown by 43.40% in the past year. This is a very strong growth!
• Measured over the past years, CPRX shows a very strong growth in Revenue. The Revenue has been growing by 280.39% on average per year.
• CPRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.45% yearly.
• CPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.42% yearly.

Analyzing Health Metrics

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:CPRX has earned a 8 out of 10:

• CPRX has an Altman-Z score of 16.82. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• CPRX's Altman-Z score of 16.82 is amongst the best of the industry. CPRX outperforms 92.27% of its industry peers.
• There is no outstanding debt for CPRX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• CPRX has a Current Ratio of 5.14. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
• CPRX has a Quick Ratio of 4.94. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination for NASDAQ:CPRX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:CPRX scores a 8 out of 10:

• With an excellent Return On Assets value of 9.64%, CPRX belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
• The Return On Equity of CPRX (11.19%) is better than 96.13% of its industry peers.
• CPRX has a Return On Invested Capital of 10.83%. This is amongst the best in the industry. CPRX outperforms 96.31% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CPRX is significantly above the industry average of 12.95%.
• The last Return On Invested Capital (10.83%) for CPRX is well below the 3 year average (20.38%), which needs to be investigated, but indicates that CPRX had better years and this may not be a problem.
• CPRX has a Profit Margin of 15.68%. This is amongst the best in the industry. CPRX outperforms 97.01% of its industry peers.
• CPRX's Operating Margin of 19.76% is amongst the best of the industry. CPRX outperforms 96.66% of its industry peers.
• CPRX has a better Gross Margin (86.67%) than 89.81% of its industry peers.

Why is NASDAQ:CPRX a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:CPRX scores a 7 out of 10:

CPRX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 20.37, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of CPRX contains the most current fundamental analsysis.

Our latest full technical report of CPRX contains the most current technical analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.