Industry Overview - The drug industry is anticipating a shift in policy with Donald Trump's reelection, potentially leading to increased innovation and M&A activity, while efforts to repeal the Inflation Reduction Act (IRA) are likely [1][2] - Drug pricing reforms will remain a priority for the new government, with previous emphasis on controlling drug prices during Trump's last term [2] - The Zacks Medical-Drugs industry is showing promising trends in 2024, driven by increased M&A and positive pipeline developments, particularly in diabetes/obesity, inflammation, and neuroscience [3] Company Highlights - **Corcept Therapeutics**: The company’s sole marketed drug, Korlym, has seen strong demand, leading to an increase in annual revenue guidance. The stock has risen 67.2% this year, with 2024 earnings estimates increasing from $1.12 to $1.31 per share [15][16] - **Madrigal Pharmaceuticals**: The FDA approved Rezdiffra, the first therapy for noncirrhotic NASH, generating approximately $77 million in sales since its launch. The stock is up 53.4% this year, with loss estimates improving from $29.49 to $24.08 per share [17][18] - **Catalyst Pharmaceuticals**: The lead drug Firdapse is experiencing strong demand, and the company has diversified its portfolio with the acquisition of Fycompa. The stock has risen 38.3% this year, with stable earnings estimates at $1.92 per share [19][20] - **Theravance Biopharma**: The company is benefiting from increased collaboration revenues from its product Yupelri. However, the stock has declined 22.1% this year, with stable loss estimates at 45 cents per share [21][23] - **Larimar Therapeutics**: The company is developing nomlabofusp for Friedreich's ataxia, with a significant stock increase of 100.5% over the past year. Loss estimates have narrowed from $1.39 to $1.16 per share [24][26] Market Performance - The Zacks Medical-Drugs industry has underperformed the S&P 500 and the broader Medical sector, with a year-to-date decline of 3.4% compared to the S&P 500's increase of 24.7% [13] - The industry currently trades at a price-to-sales ratio of 2.24, significantly lower than the S&P 500's 6.19 and the Zacks Medical sector's 3.44 [14]

The drug industry witnessed major policy changes during Joe Biden's four-year term as U.S. President, including the historic Inflation Reduction Act (“IRA”). With Donald Trump’s reelection, the biotech industry hopes to witness more innovation and mergers and acquisitions (M&A) activity. Efforts to repeal the IRA look likely. However, it all depends on who is appointed to key roles at federal health agencies. Drug pricing reforms are expected to remain a key priority for the new government. Trump, in his pr ...

Corcept Therapeutics Incorporated (CORT) has been having a fabulous 2024, with its share price increasing 60.5% year to date as of Nov. 5, 2024.This company engages in the discovery and development of drugs for the treatment of severe endocrinologic, oncologic, metabolic and neurologic disorders in the United States. It has spent more than 25 years dedicated to advancing cortisol modulation, resulting in the discovery of more than 1,000 unique selective modulators. Remaining focused on innovation, Corcept i ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth S ...

Corcept Therapeutics (CORT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, November 5th:Corcept Therapeutics Incorporated (CORT) : This drugmaker for severe endocrinologic, oncologic, metabolic, and neurologic disorders has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.6% over the last 60 days.Corcept’s shares gained 46.4% over the last three months compared with the S&P 500’s advance of 9.1%. The company possesses a Mome ...

Company Performance - Corcept Therapeutics (CORT) shares have increased by 12.1% over the past month and reached a new 52-week high of $51.32, with a year-to-date gain of 54.1% compared to the Zacks Medical sector's 3.1% and the Zacks Medical - Drugs industry's -4.2% return [1][2] - The company has consistently exceeded earnings expectations, reporting EPS of $0.41 against a consensus estimate of $0.27 in its last earnings report on October 30, 2024, and beating revenue estimates by 6.07% [2] Financial Projections - For the current fiscal year, Corcept is projected to achieve earnings of $1.25 per share on revenues of $683.78 million, reflecting a 32.98% increase in EPS and a 41.75% increase in revenues [3] - The next fiscal year forecasts earnings of $1.67 per share on revenues of $754.7 million, indicating year-over-year changes of 33.76% in EPS and 10.37% in revenues [3] Valuation Metrics - Corcept has a Value Score of D, with Growth and Momentum Scores of B and A, respectively, resulting in a VGM Score of B [6] - The stock trades at 40.1X current fiscal year EPS estimates, significantly higher than the peer industry average of 17.6X, and at 52.3X on a trailing cash flow basis compared to the peer group's average of 9.1X [6] Zacks Rank - Corcept holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [7] Industry Comparison - The Medical - Drugs industry is positioned in the top 29% of all industries, suggesting favorable conditions for both Corcept and its peer, Catalyst Pharmaceuticals, Inc. (CPRX), which has a Zacks Rank of 2 (Buy) [9][10]

Core Viewpoint - Corcept Therapeutics (CORT) shares have increased by 4.8% recently, with a mean price target of $74.60 suggesting a potential upside of 56.7% from the current price of $47.62 [1] Price Targets - The mean estimate consists of five short-term price targets with a standard deviation of $5.18, indicating variability among analysts [2] - The lowest estimate of $67 indicates a 40.7% increase, while the highest estimate suggests a surge of 68% to $80 [2] - A low standard deviation signifies a high degree of agreement among analysts regarding price movement [7] Analyst Sentiment - Analysts are optimistic about CORT's earnings prospects, as indicated by upward revisions in earnings estimates [9] - Over the past 30 days, the Zacks Consensus Estimate for the current year has risen by 11.8%, with three estimates moving higher and no negative revisions [10] - CORT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - While price targets are popular among investors, their reliability has been questioned, as they often mislead rather than guide [5][6] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6] - Investors should approach price targets with skepticism and not rely solely on them for investment decisions [8]

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.Our " ...

Investors might want to bet on Corcept Therapeutics (CORT) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The upward trend in estimate revisions for this drug developer reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation be ...