CORMEDIX INC (NASDAQ:CRMD) – A High-Growth Stock Aligned with Louis Navellier’s Investment Strategy

Louis Navellier’s Little Book That Makes You Rich presents a strategy for growth investing centered on finding stocks with solid earnings momentum, rising sales, and better profitability. The method highlights eight important factors, such as upward earnings revisions, strong cash flow, and high return on equity, to identify companies likely to see continued growth. By filtering for these traits, investors seek stocks with the chance for notable price gains.

One stock that fits these ideas is CORMEDIX INC (NASDAQ:CRMD), a pharmaceutical firm focused on treatments for serious medical conditions. Below, we look at how CRMD matches several of Navellier’s key growth factors.

1. Upward Earnings Revisions & Surprises

A key part of Navellier’s approach is rising earnings estimates, which suggest better business prospects. CRMD’s average EPS estimate for the next quarter has increased by 42.88% over the past three months, showing strong analyst confidence. The company has also exceeded EPS estimates in each of the last four quarters, with an average surprise of 44.57%, demonstrating steady strong performance.

2. Rapid Sales and Earnings Growth

Navellier favors firms with fast-growing revenue and earnings. CRMD’s year-over-year revenue growth is an impressive 14,970.65%, while quarterly sales jumped 4,829.39% compared to the same period last year. Similarly, EPS growth over the past year hit 180.65%, with the latest quarter showing a 212% rise. These numbers point to a company growing quickly, a sign of high-potential candidates.

3. Growing Operating Margins & Solid Cash Flow

Better profitability is another focus in Navellier’s framework. CRMD’s operating margin has increased by 100.56% over the past year, showing efficient cost control alongside revenue growth. Free cash flow, a key financial health indicator, has also risen 197%, giving the company resources to fund growth or reduce debt, though CRMD currently has no debt.

4. High Return on Equity (ROE)

A strong ROE indicates good use of shareholder funds. CRMD’s ROE of 23.19% is better than 93.78% of its peers in the pharmaceutical industry, highlighting its ability to generate profits from equity investments.

Fundamental Analysis Summary

CRMD’s fundamental analysis report points to its solid financial health, with high scores for solvency and liquidity. The company’s valuation looks appealing compared to industry peers, trading at a forward P/E of 7.50, well below the S&P 500 average. While profitability has varied in the past, recent results suggest improvement, backed by strong growth expectations.

Conclusion

CRMD displays many of the qualities Navellier looks for in growth stocks: fast-rising revenue, better margins, solid cash flow, and upward earnings revisions. While past results don’t ensure future success, the company’s recent performance aligns with the criteria in The Little Book That Makes You Rich.

For investors wanting to find similar high-growth stocks, the full screening results based on Navellier’s method are available for further review.

Disclaimer: This article is not investment advice. Always do your own research before making investment decisions.