Why Catalyst Pharmaceutical (CPRX) is a Top Value Stock for the Long-Term

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Catalyst Pharmaceutical (CPRX)

Coral Gables, FL-based Catalyst Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapies targeting rare and difficult-to-treat diseases.

CPRX sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Medical - Drugs industry's P/E of 13.1X, shares of Catalyst Pharmaceutical are trading at a forward P/E of 9.6X. CPRX also has a PEG Ratio of 0.8, a Price/Cash Flow ratio of 8.8X, and a Price/Sales ratio of 4.9X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.1 to $2.25. CPRX has an average earnings surprise of 28.2%.

CPRX should be on investors' short list because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Catalyst Pharmaceuticals, Inc. (CPRX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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