CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) - A High Growth Momentum Stock with Strong Technical Setup

CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) stands out as a compelling candidate for high growth momentum investors, combining strong earnings momentum with a favorable technical breakout pattern. The stock meets rigorous screening criteria with a High Growth Momentum Rating of 7, a Technical Rating of 9, and a Setup Rating of 8.

Growth and Earnings Momentum

• EPS Growth: CPRX reported a 136.8% year-over-year EPS increase in the most recent quarter, with TTM EPS growth of 112.2%.
• Revenue Growth: Sales grew by 43.6% in the latest quarter, with TTM revenue up 23.5%.
• Profit Margins: Quarterly profit margins expanded to 39.4%, up from 34.1% in the prior quarter.
• Estimate Beats: The company has surpassed EPS estimates in all of the last four quarters, with an average beat of 18.8%.
• Analyst Revisions: Upward revisions for next year’s EPS and revenue estimates suggest continued optimism.

Technical Strength

• Trend: CPRX maintains a long-term positive trend, outperforming 92% of stocks in the Biotechnology industry.
• Support Levels: Multiple support zones exist between $19.37 and $23.60, providing a cushion against pullbacks.
• Consolidation: The stock has been trading in a tight range recently, forming a solid base for a potential breakout.

Setup Quality

• Entry Point: A breakout above $24.85 could signal a new upward move.
• Stop Loss: A stop below $23.14 limits downside risk to 6.9%.
• Liquidity: Average daily volume of 1.3 million shares ensures smooth trading.

For a deeper technical assessment, review the full technical report for CPRX.

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Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.