Why NASDAQ:CPRX Is a Promising High-Growth Stock in the Midst of Consolidation.

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.

Growth Insights: NASDAQ:CPRX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:CPRX has achieved 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
• CPRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.40%.
• 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.

Deciphering NASDAQ:CPRX's Health Rating

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 17.99. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of CPRX (17.99) is better than 91.80% of its industry peers.
• CPRX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.

Looking at the Profitability

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 96.26% of the companies in the same industry.
• With an excellent Return On Equity value of 11.19%, CPRX belongs to the best of the industry, outperforming 95.54% of the companies in the same industry.
• CPRX has a Return On Invested Capital of 10.83%. This is amongst the best in the industry. CPRX outperforms 95.90% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for CPRX is significantly above the industry average of 14.77%.
• The 3 year average ROIC (20.38%) for CPRX is well above the current ROIC(10.83%). The reason for the recent decline needs to be investigated.
• With an excellent Profit Margin value of 15.68%, CPRX belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
• CPRX has a Operating Margin of 19.76%. This is amongst the best in the industry. CPRX outperforms 96.61% of its industry peers.
• CPRX has a Gross Margin of 86.67%. This is amongst the best in the industry. CPRX outperforms 90.02% of its industry peers.

Why is NASDAQ:CPRX a setup?

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:

CPRX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 21.90. Right above this resistance zone may be a good entry point. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

Disclaimer

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.