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Are Investors Undervaluing Catalyst Pharmaceuticals (CPRX) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Catalyst Pharmaceuticals (CPRX - Free Report) . CPRX is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

CPRX is also sporting a PEG ratio of 0.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CPRX's PEG compares to its industry's average PEG of 1.92. Within the past year, CPRX's PEG has been as high as 3.40 and as low as 0.63, with a median of 2.20.

Finally, we should also recognize that CPRX has a P/CF ratio of 11.49. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.66. Over the past year, CPRX's P/CF has been as high as 25.41 and as low as 11.20, with a median of 14.19.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Catalyst Pharmaceuticals is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CPRX feels like a great value stock at the moment.


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