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.