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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but CATALYST PHARMACEUTICALS INC has surfaced on our radar for growth with base formation, warranting further examination.

Unpacking NASDAQ:CPRX's Growth Rating

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 9 out of 10:

• The Earnings Per Share has grown by an impressive 63.89% over the past year.
• Measured over the past years, CPRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.48% on average per year.
• CPRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 85.90%.
• 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.
• Based on estimates for the next years, CPRX will show a very strong growth in Earnings Per Share. The EPS will grow by 32.43% 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 14.81% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Analyzing Health Metrics

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CPRX has received a 8 out of 10:

• CPRX has an Altman-Z score of 17.89. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• CPRX's Altman-Z score of 17.89 is amongst the best of the industry. CPRX outperforms 90.97% 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.

What does the Profitability looks like 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 95.93% 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 95.75% 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 96.11% 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 13.59%.
• 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 96.11% of its industry peers.
• CPRX has a better Operating Margin (19.76%) than 96.46% of its industry peers.
• CPRX has a better Gross Margin (86.67%) than 90.09% of its industry peers.

How do we evaluate the setup for NASDAQ:CPRX?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:CPRX exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

CPRX has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. 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 21.60, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.