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

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.

A Closer Look at Growth for NASDAQ:CPRX

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 9 out of 10:

• The Earnings Per Share has grown by an impressive 63.89% over the past year.
• 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 32.13% 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.
• The Earnings Per Share is expected to grow by 32.43% on average over the next years. This is a very strong growth
• 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.

Understanding NASDAQ:CPRX's Health Score

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:

• An Altman-Z score of 17.03 indicates that CPRX is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 17.03, CPRX belongs to the top of the industry, outperforming 91.50% of the companies in the same industry.
• CPRX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 5.11 indicates that CPRX has no problem at all paying its short term obligations.
• A Quick Ratio of 4.92 indicates that CPRX has no problem at all paying its short term obligations.

Evaluating Profitability: 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:

• The Return On Assets of CPRX (18.50%) is better than 98.41% of its industry peers.
• Looking at the Return On Equity, with a value of 21.61%, CPRX belongs to the top of the industry, outperforming 97.35% of the companies in the same industry.
• CPRX has a better Return On Invested Capital (20.22%) than 98.23% 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%.
• CPRX has a better Profit Margin (31.01%) than 98.23% of its industry peers.
• With an excellent Operating Margin value of 37.78%, CPRX belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
• CPRX's Gross Margin of 86.32% is amongst the best of the industry. CPRX outperforms 89.73% of its industry peers.

Looking at the Setup

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:CPRX is 8:

CPRX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. 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 21.82, 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.

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

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.