Rigel Pharmaceuticals Inc (NASDAQ:RIGL) Emerges as a Top Growth Stock on Navellier's Screening Model

Rigel Pharmaceuticals Inc (NASDAQ:RIGL) has become an interesting candidate for growth investors using the screening method from Louis Navellier's "The Little Book That Makes You Rich." This investment process finds companies showing better growth traits through eight specific fundamental measures made to find increasing business speed. The method focuses on earnings revisions, surprises, sales growth, margin gains, cash flow, earnings growth, speed, and high returns on equity, all signs that have in the past linked with good stock performance.

The pharmaceutical company shows very good fit with Navellier's growth measures, starting with very high earnings revisions. Analysts have raised their next-quarter EPS estimates by 151.4% over the last three months, showing more belief in short-term performance. This measure is very important within the method because upward revisions often come before actual earnings gains and usually show good internal progress not yet fully seen by the market.

Rigel's earnings surprise history is especially notable, with the company exceeding EPS estimates in all of the last four quarters by an average of 440.4%. Steady positive surprises show management's skill in beating forecasts and often lead analysts to raise future estimates, creating a positive loop of increasing projections and possibly higher prices. This performance directly backs Navellier's idea that companies able to regularly beat expectations tend to give better returns.

The company's growth numbers show fast growth across many areas. Revenue rose 105.6% year-over-year while quarterly sales grew 176.0% compared to the same quarter last year. This kind of sales speed is key within the growth investing model because increasing revenue shows market acceptance and ability to grow, necessary parts for continued stock growth.

Operating margin growth is another important factor, with Rigel reaching a 663.7% gain in profitability margins over the past year. This large margin gain indicates the company is turning its revenue growth into much higher profitability, just the sort of operational effectiveness Navellier's method aims to find. Growing margins often suggest pricing strength, cost management, and operational scale, all traits of good growth businesses.

Free cash flow production has jumped 235.3% year-over-year, passing the method's need for good cash flow growth. Strong cash creation gives financial freedom to fund internal growth projects, follow strategic chances, or improve the balance sheet without needing outside money, a main point for growth investors judging financial stability.

Earnings growth numbers are very strong, with EPS growing 729.1% year-over-year and quarterly EPS rising 5,566.7% compared to the same quarter last year. These very high growth rates show the company's ability to change revenue growth into bottom-line results, a key factor in Navellier's model since earnings growth finally moves stock valuation.

The company shows clear earnings speed, with current quarterly EPS growth greatly passing earlier growth rates. This increasing pattern is especially valued within the method as it hints at better business forces rather than just continued performance. Speed investors look for increasing growth rates as they often come before major price gains.

Return on equity is at a high 119.4%, well beyond the method's lowest limit and showing very efficient use of shareholder money. High ROE is important in Navellier's process because it shows management's ability to create large profits from invested equity, a trait found in many outstanding growth companies.

According to Rigel's full fundamental analysis report, the company gets an overall rating of 6 out of 10, with especially high scores in valuation (9/10) and growth (7/10). The analysis states Rigel's "average financial health and profitability rating" along with "excellent growth and valuation score," suggesting the company "is growing and it is still cheap, a rare combination." The report points out very good profitability ratios, with return on assets, return on equity, and return on invested capital all ranking near the top of the industry. While the Altman-Z score shows some financial health worries, the company's debt levels seem workable relative to its cash flow production.

For investors wanting to find more companies meeting these strict growth measures, the Little Book screening method keeps finding possible investment chances that show these traits of better growth speed.

Disclaimer: This analysis is given for information only and does not make up investment advice, financial guidance, or a suggestion to buy or sell any security. Investors should do their own research and talk with qualified financial professionals before making investment decisions.