This is a stock that was highlighted to me via the quantitative process at MAPsignals. Each day our systems comb through thousands of equities and rank them via three important criteria: fundamentals, technicals, and institutional support. Let's unpack those 3 for CPRX.
Catalyst is a biopharmaceutical firm that develops therapies for rare debilitating, chronic neuromuscular and neurological diseases like Lambert-Eaton myasthenic syndrome (LEMS) and congenital myasthenic syndromes (CMS) and others. The company is smaller in size with a market cap of just under $2 billion.
The fundamental picture is strong with sales expected to grow 18% to $248 million in 2023. Additionally, EPS is slated to grow to 87 cents per share next year, giving this fast grower a forward PE of 18.4. The firm has over $250mm in cash and only $3.6 million in long-term debt.
The technical picture has been one of its strengths in 2022 with shares gaining 136%. It's been one of the best performers in a very challenging macro environment.
Finally, the institutional support narrative is there. The MAPsignals process seeks to identify stocks trading in an unusual manner, indicative of Big Money buying. CPRX has been one of the highest-ranking stocks in our data since August 2022 when the stock was trading at just over $10. As of this writing the stock sits at $16.
Here's why I like Catalyst for a bet. Each week our algorithms rank 20 stocks with the highest scores for fundamentals alongside institutional support. CPRX made that list 9 times in 5 short months, indicating investors are betting on upside in this name.
Based on the strong revenue and earnings outlook, solid cash balance, low debt, and institutional support, this company is poised for more upside in 2023.