Why NASDAQ:CPRX Is a Standout High-Growth Stock in a Consolidation Phase.

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.

Analyzing Growth Metrics

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:CPRX has received 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!
• CPRX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 280.39% yearly.
• Based on estimates for the next years, CPRX will show a very strong growth in Earnings Per Share. The EPS will grow by 27.45% on average per year.
• Based on estimates for the next years, CPRX will show a quite strong growth in Revenue. The Revenue will grow by 11.42% on average per year.

How do we evaluate the Health for NASDAQ:CPRX?

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:CPRX scores a 8 out of 10:

• CPRX has an Altman-Z score of 16.92. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 16.92, CPRX belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
• 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.
• A Current Ratio of 5.14 indicates that CPRX has no problem at all paying 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 Analysis for NASDAQ:CPRX

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

• Looking at the Return On Assets, with a value of 9.64%, CPRX belongs to the top of the industry, outperforming 96.65% of the companies in the same industry.
• CPRX has a Return On Equity of 11.19%. This is amongst the best in the industry. CPRX outperforms 95.95% of its industry peers.
• The Return On Invested Capital of CPRX (10.83%) is better than 96.13% 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 13.00%.
• 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 96.83% of its industry peers.
• With an excellent Operating Margin value of 19.76%, CPRX belongs to the best of the industry, outperforming 96.65% of the companies in the same industry.
• With an excellent Gross Margin value of 86.67%, CPRX belongs to the best of the industry, outperforming 89.79% of the companies in the same industry.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:CPRX has a 10 as its setup rating:

CPRX has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 20.44. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 20.30, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for CPRX in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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.

Check the latest full technical report of CPRX for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.