Catalyst Pharmaceutical (CPRX) Outpaces Stock Market Gains: What You Should Know

·2 min read

In the latest trading session, Catalyst Pharmaceutical (CPRX) closed at $16.44, marking a +1.99% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.

Heading into today, shares of the specialty drug company had gained 5.64% over the past month, outpacing the Medical sector's gain of 0.23% and the S&P 500's gain of 0.25% in that time.

Wall Street will be looking for positivity from Catalyst Pharmaceutical as it approaches its next earnings report date. The company is expected to report EPS of $0.30, up 150% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $83.46 million, up 93.69% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.42 per share and revenue of $381.02 million. These totals would mark changes of +89.33% and +77.88%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Catalyst Pharmaceutical. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 25.67% higher. Catalyst Pharmaceutical is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Catalyst Pharmaceutical is currently trading at a Forward P/E ratio of 11.39. For comparison, its industry has an average Forward P/E of 12.25, which means Catalyst Pharmaceutical is trading at a discount to the group.

The Medical - Drugs industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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