CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) stands out as a compelling candidate for investors following Louis Navellier's growth-focused strategy. The company, which specializes in rare disease treatments, meets multiple criteria from Navellier's "Little Book That Makes You Rich," demonstrating strong earnings momentum, sales growth, and profitability.
Key Strengths Based on Navellier’s Criteria
- Positive Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 5.2% over the past three months. CPRX has also beaten earnings expectations in each of the last four quarters, with an average surprise of 23.1%.
- Strong Sales & Earnings Growth: Revenue grew 30% year-over-year, while quarterly sales increased 43.6%. EPS surged 136.8% compared to the same quarter last year, and annual EPS growth exceeded 112%.
- Expanding Profitability: Operating margins improved by 127.3% over the past year, reflecting efficient cost management. The company’s operating margin of 43.3% ranks in the top 1% of its industry.
- Robust Cash Flow: Free cash flow grew 123.9% year-over-year, indicating strong financial health and the ability to fund future growth.
- High Return on Equity: CPRX delivers a 24.8% ROE, outperforming 97% of its biotechnology peers.
Valuation & Financial Health
CPRX appears reasonably priced with a P/E ratio of 13.3, below both the industry average and the S&P 500. The company has no debt and maintains a healthy liquidity position, with a current ratio of 6.1.
For a deeper dive into the financials, review the full fundamental analysis report.
Our Little Book Growth Stock Screener lists more stocks that fit this strategy and is updated daily.
Disclaimer
This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.
