Shares of Catalyst Pharmaceuticals, Inc. (CPRX) are jumping based on sales and earnings news.
CPRX is a biopharmaceutical company aimed at developing and selling therapies for rare and challenging diseases. The company’s Firdapse product has been promising since launch, achieving a 19.2% net sales rise over last year. Also, recent acquisitions and analyst sales growth expectations of 18.7% and 18.1% for 2024 and 2025, respectively, point to bright days ahead.
The company reported second-quarter earnings in October, showing a 23.2% year-over-year revenue jump on the back of strong product sales and international agreements. There’s been a lot of favorable product and market news for CPRX too. It makes sense that analysts are expecting more from the company after revising per-share earnings estimates upwards to $1.92.
It’s no wonder CPRX shares are up 29% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. Recently, CPRX has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in CPRX shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with Catalyst.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CPRX has had strong sales and earnings growth:
Source: FactSet
Plus, EPS is estimated to ramp higher this year by +26.7%.
Now it makes sense why the stock has been powering to new heights. CPRX has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
Catalyst has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when CPRX was a top pick…rising with time:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The CPRX rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in CPRX at the time of publication.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.