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

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but CATALYST PHARMACEUTICALS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

A Closer Look at Growth for 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 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!
• 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 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 14.29% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Health Analysis for NASDAQ:CPRX

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:

• An Altman-Z score of 17.29 indicates that CPRX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CPRX (17.29) is better than 90.44% 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 5.11. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
• CPRX has a Quick Ratio of 4.92. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.

Profitability Assessment of NASDAQ:CPRX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:CPRX was assigned a score of 8 for profitability:

• The Return On Assets of CPRX (18.50%) is better than 98.41% of its industry peers.
• CPRX has a better Return On Equity (21.61%) than 97.35% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 20.22%, CPRX belongs to the top of the industry, outperforming 98.23% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for CPRX is significantly above the industry average of 13.85%.
• CPRX has a better Profit Margin (31.01%) than 98.23% of its industry peers.
• Looking at the Operating Margin, with a value of 37.78%, CPRX belongs to the top of the industry, outperforming 99.11% of the companies in the same industry.
• With an excellent Gross Margin value of 86.32%, CPRX belongs to the best of the industry, outperforming 89.73% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:CPRX?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:CPRX this score is currently 7:

CPRX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 23.93. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 23.00, a Stop Loss order could be placed below this zone. 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.

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

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.