Is CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) on the Verge of a Major Breakout as a Strong Growth Stock?

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.

Understanding NASDAQ:CPRX's Growth

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:

• CPRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.73%, which is quite impressive.
• CPRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.29% yearly.
• CPRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.47%.
• Measured over the past years, CPRX shows a very strong growth in Revenue. The Revenue has been growing by 36.89% on average per year.
• CPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.98% yearly.

Health Assessment of NASDAQ:CPRX

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 15.17. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 15.17, CPRX belongs to the top of the industry, outperforming 91.59% 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.
• CPRX has a Current Ratio of 5.17. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
• CPRX has a Quick Ratio of 5.01. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.

Profitability Analysis for NASDAQ:CPRX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:CPRX, the assigned 9 is noteworthy for profitability:

• With an excellent Return On Assets value of 19.25%, CPRX belongs to the best of the industry, outperforming 98.60% of the companies in the same industry.
• CPRX has a Return On Equity of 22.52%. This is amongst the best in the industry. CPRX outperforms 97.37% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 20.21%, CPRX belongs to the top of the industry, outperforming 97.90% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for CPRX is significantly above the industry average of 14.39%.
• CPRX has a Profit Margin of 33.33%. This is amongst the best in the industry. CPRX outperforms 98.25% of its industry peers.
• CPRX has a better Operating Margin (39.68%) than 99.30% of its industry peers.
• In the last couple of years the Operating Margin of CPRX has grown nicely.
• With an excellent Gross Margin value of 86.00%, CPRX belongs to the best of the industry, outperforming 89.32% of the companies in the same industry.

How does the Setup look for NASDAQ:CPRX

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:CPRX currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Although the technical rating is only medium, CPRX does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced.

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.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.