A healthy cash position and strong recent earnings results have Catalyst Pharmaceuticals, Inc. (CPRX) shares rising.
CPRX develops and sells innovative medicines aimed at rare and difficult-to-treat diseases. Some of the ailments it targets include Lambert-Eaton myasthenic syndrome, congenital myasthenic syndromes, MuSK antibody positive myasthenia gravis, spinal muscular atrophy type 3, and infantile spasms.
Financially, CPRX’s reported adjusted per-share earnings of $0.56 for 2024’s second quarter, beating consensus EPS estimates of $0.42. The company also brought in total revenues of $122.7 million, which represents a 23% year-over-year increase. CPRX cut its research and development costs by 25% from a year prior, which shows fiscal discipline. Also, it had cash and investments worth $375.7 million on hand as of the end of June, which could mean more investment opportunities in the future.
It’s no wonder CPRX shares are up 19% 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 +26.6%.
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 for years. 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 three years. The blue bars below show when CPRX was a top pick…rising along the way:
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.