Does CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) meet the Minervini criteria?

Our stock screener has spotted CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

A Technical Analysis using the Minervini Trend Template.

CPRX checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

ChartMill's Evaluation of Growth

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. CPRX scores a 7 out of 10:

Explosive Earnings Growth

• The earnings per share (EPS) of CPRX have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 41.94% increase. This reflects the company's ability to improve its profitability over time.
• The 1-year EPS growth of CPRX (61.73%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• CPRX has experienced 52.41% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• The recent q2q revenue growth of 28.26% of CPRX showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• The sales growth of CPRX is accelerating: the current Q2Q growth of 28.26% is above the previous quarter Q2Q growth of 25.31%. Sales momentum and acceleration are key for high growth systems.
• Sales acceleration happened 3 quarters in a row.
• The 1-year revenue growth of CPRX (23.47%) has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and expand its market share.
• The average next Quarter EPS Estimate by analysts was adjusted by 12.58%, reflecting the evolving market expectations for the company's EPS growth.
• With a track record of beating EPS estimates in the last 4 quarters, CPRX showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• CPRX has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• With a favorable trend in its profit margin over the past year, CPRX demonstrates its ability to enhance profitability through efficient operations.
• With a favorable trend in its free cash flow (FCF) over the past year, CPRX demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• CPRX demonstrates a strong Return on Equity(ROE) of 22.52%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. CATALYST PHARMACEUTICALS INC shows promising potential for continued success.
• With a Debt/Equity ratio of 0.0, CPRX maintains a solid financial position with controlled leverage.

Market Strength & Institutional Confidence

• 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 achieved an impressive Relative Strength (RS) rating of 92.14, showcasing its ability to outperform the broader market.

Why is CPRX a setup?

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, CPRX has a 3 as its setup rating:

Although CPRX has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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

Final Thoughts

It looks like CATALYST PHARMACEUTICALS INC meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

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.