Is CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) a Fit for high Growth Investing Strategies?

Our stock screener has detected a potential breakout setup on CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NASDAQ:CPRX.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall CPRX gets a technical rating of 7 out of 10. In the last year, CPRX was one of the better performers, but we do observe some doubts in the very recent evolution.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• When comparing the yearly performance of all stocks, we notice that CPRX is one of the better performing stocks in the market, outperforming 92% of all stocks. On top of that, CPRX also shows a nice and consistent pattern of rising prices.
• CPRX is part of the Biotechnology industry. There are 568 other stocks in this industry. CPRX outperforms 90% of them.
• CPRX is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month CPRX has a been trading in the 20.40 - 26.16 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

Why is CPRX a setup?

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 CPRX this score is currently 7:

Besides having an excellent technical rating, CPRX also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 21.78, 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.

Some of the high growth metrics of CPRX highlighted

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. CPRX boasts a 7 out of 10:

Earnings Momentum

• CPRX has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 41.94% increase. This indicates improving financial performance and the company's effective management of its operations.
• Over the past year, CPRX has demonstrated 61.73% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The EPS of CPRX has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• The q2q revenue growth of 28.26% of CPRX highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• Accelerating Sales growth for CPRX: the current Q2Q growth of 28.26% exceeds the previous quarter Q2Q growth of 25.31%.
• Sales acceleration happened 3 quarters in a row.
• CPRX has achieved significant 1-year revenue growth of 23.47%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• The average next Quarter EPS Estimate by analysts was adjusted by 15.91%, reflecting the evolving market expectations for the company's EPS growth.
• CPRX has consistently surpassed EPS estimates in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Financial Strength & Profitability

• The operating margin of CPRX has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• CPRX has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• The free cash flow (FCF) of CPRX has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• The Return on Equity(ROE) of CPRX is 22.52%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• With a Debt-to-Equity ratio at 0.0, CPRX showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.

Institutional Confidence & Market Strength

• With 83.75% of the total shares held by institutional investors, CPRX showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• CPRX has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 92.96 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

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.