CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) – A Strong Contender for Growth Investors

CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) stands out as a compelling pick for investors following Louis Navellier’s growth strategy. The company meets multiple criteria outlined in The Little Book That Makes You Rich, demonstrating strong earnings momentum, expanding margins, and robust cash flow growth. Below, we examine why CPRX aligns with these principles.

Key Strengths of CPRX

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 6.67% over the past three months. CPRX has also exceeded earnings expectations in all of the last four quarters, with an average surprise of 23.15%.
• Revenue & Earnings Growth: Year-over-year revenue growth stands at 29.96%, while quarterly sales surged 43.56%. EPS growth is even more impressive, with a 112.16% increase over the past year and 136.84% quarter-over-quarter.
• Expanding Profitability: Operating margins improved by 127.31% year-over-year, reflecting efficient cost management. Free cash flow grew by 123.91%, reinforcing financial flexibility.
• High Return on Equity (ROE): With an ROE of 24.85%, CPRX generates strong returns for shareholders, well above the industry average.

Fundamental Health

CPRX holds a solid fundamental rating of 8/10, excelling in profitability, financial health, and growth metrics. The company operates with no debt, a current ratio of 6.14, and an Altman-Z score of 18.65, indicating low bankruptcy risk. Valuation metrics also appear reasonable, with a P/E ratio of 15.90, below both the industry and S&P 500 averages.

For a deeper dive, review the full fundamental analysis report.

Our Louis Navellier Growth Strategy screener provides more stocks that fit this approach, updated regularly.

Disclaimer

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