NASDAQ:CPRX—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Last update: Oct 14, 2024

In this article we will dive into CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) as a possible candidate for growth investing. Investors should always do their own research, but we noticed CATALYST PHARMACEUTICALS INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

A Closer Look at Growth for NASDAQ:CPRX

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:CPRX scores a 8 out of 10:

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

Exploring NASDAQ:CPRX's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:CPRX, the assigned 8 reflects its health status:

CPRX has an Altman-Z score of 16.76. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 16.76, CPRX belongs to the best of the industry, outperforming 91.68% 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.
A Quick Ratio of 4.94 indicates that CPRX has no problem at all paying its short term obligations.

Assessing Profitability 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 96.28% of the companies in the same industry.
CPRX has a better Return On Equity (11.19%) than 95.58% of its industry peers.
CPRX's Return On Invested Capital of 10.83% is amongst the best of the industry. CPRX outperforms 95.93% of its industry peers.
CPRX had an Average Return On Invested Capital over the past 3 years of 20.38%. This is significantly above the industry average of 13.83%.
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 better Profit Margin (15.68%) than 96.46% of its industry peers.
The Operating Margin of CPRX (19.76%) is better than 96.46% of its industry peers.
CPRX's Gross Margin of 86.67% is amongst the best of the industry. CPRX outperforms 89.91% of its industry peers.

How do we evaluate the setup for NASDAQ:CPRX?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:CPRX currently has a 8 as setup rating:

Besides having an excellent technical rating, CPRX also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 20.19, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of CPRX

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.