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Corcept Therapeutics Incorporated (CORT) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Corcept Therapeutics (CORT - Free Report) ? Shares have been on the move with the stock up 26.8% over the past month. The stock hit a new 52-week high of $39.75 in the previous session. Corcept Therapeutics has gained 19.1% since the start of the year compared to the 7.1% move for the Zacks Medical sector and the -1.9% return for the Zacks Medical - Drugs industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 29, 2024, Corcept reported EPS of $0.32 versus consensus estimate of $0.23 while it beat the consensus revenue estimate by 6.41%.
For the current fiscal year, Corcept is expected to post earnings of $1.03 per share on $657.86 million in revenues. This represents a 9.57% change in EPS on a 36.38% change in revenues. For the next fiscal year, the company is expected to earn $1.56 per share on $714.87 million in revenues. This represents a year-over-year change of 50.87% and 8.67%, respectively.
Valuation Metrics
Corcept may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Corcept has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 37.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.9X. On a trailing cash flow basis, the stock currently trades at 40.4X versus its peer group's average of 8.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Corcept currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Corcept meets the list of requirements. Thus, it seems as though Corcept shares could have a bit more room to run in the near term.
How Does CORT Stack Up to the Competition?
Shares of CORT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Chugai Pharmaceutical Co., Ltd. Unsponsored ADR (CHGCY - Free Report) . CHGCY has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Chugai Pharmaceutical Co., Ltd. Unsponsored ADR beat our consensus estimate by 5.56%, and for the current fiscal year, CHGCY is expected to post earnings of $0.78 per share on revenue of $7.52 billion.
Shares of Chugai Pharmaceutical Co., Ltd. Unsponsored ADR have gained 17.7% over the past month, and currently trade at a forward P/E of 27.95X and a P/CF of 24.64X.
The Medical - Drugs industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CORT and CHGCY, even beyond their own solid fundamental situation.
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Corcept Therapeutics Incorporated (CORT) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Corcept Therapeutics (CORT - Free Report) ? Shares have been on the move with the stock up 26.8% over the past month. The stock hit a new 52-week high of $39.75 in the previous session. Corcept Therapeutics has gained 19.1% since the start of the year compared to the 7.1% move for the Zacks Medical sector and the -1.9% return for the Zacks Medical - Drugs industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 29, 2024, Corcept reported EPS of $0.32 versus consensus estimate of $0.23 while it beat the consensus revenue estimate by 6.41%.
For the current fiscal year, Corcept is expected to post earnings of $1.03 per share on $657.86 million in revenues. This represents a 9.57% change in EPS on a 36.38% change in revenues. For the next fiscal year, the company is expected to earn $1.56 per share on $714.87 million in revenues. This represents a year-over-year change of 50.87% and 8.67%, respectively.
Valuation Metrics
Corcept may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Corcept has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 37.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.9X. On a trailing cash flow basis, the stock currently trades at 40.4X versus its peer group's average of 8.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Corcept currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Corcept meets the list of requirements. Thus, it seems as though Corcept shares could have a bit more room to run in the near term.
How Does CORT Stack Up to the Competition?
Shares of CORT have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Chugai Pharmaceutical Co., Ltd. Unsponsored ADR (CHGCY - Free Report) . CHGCY has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Chugai Pharmaceutical Co., Ltd. Unsponsored ADR beat our consensus estimate by 5.56%, and for the current fiscal year, CHGCY is expected to post earnings of $0.78 per share on revenue of $7.52 billion.
Shares of Chugai Pharmaceutical Co., Ltd. Unsponsored ADR have gained 17.7% over the past month, and currently trade at a forward P/E of 27.95X and a P/CF of 24.64X.
The Medical - Drugs industry is in the top 40% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CORT and CHGCY, even beyond their own solid fundamental situation.