Collegium Pharmaceutical, Inc. (COLL) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Collegium Pharmaceutical (COLL) has demonstrated strong stock performance, with a 33.5% increase over the past month and a 67% gain since the beginning of the year, significantly outperforming the Zacks Medical sector and the Zacks Medical - Drugs industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $2.25 against a consensus estimate of $1.88 in its last earnings report [2]. - For the current fiscal year, Collegium is projected to achieve earnings of $7.55 per share on revenues of $783.93 million, reflecting a 17.05% increase in EPS and a 24.15% increase in revenues [3]. - The following fiscal year is expected to see a slight decline in EPS to $7.4 per share, with revenues increasing to $807.27 million, indicating a year-over-year change of -2.03% in EPS and 2.98% in revenues [3]. Valuation Metrics - Collegium Pharmaceutical's stock trades at a valuation of 6.3X current fiscal year EPS estimates, significantly lower than the peer industry average of 19.3X [7]. - On a trailing cash flow basis, the stock trades at 3.9X compared to the peer group's average of 15.9X, positioning the company favorably for value investors [7]. Zacks Rank and Style Scores - The company holds a Zacks Rank of 1 (Strong Buy), supported by rising earnings estimates [8]. - Collegium has a Value Score of A, a Growth Score of D, and a Momentum Score of C, resulting in a combined VGM Score of B [6][9]. Industry Comparison - The Medical - Drugs industry is performing well, ranking in the top 28% of all industries, providing a favorable environment for both Collegium Pharmaceutical and its peer, Catalyst Pharmaceuticals, Inc. (CPRX) [12]. - Catalyst Pharmaceuticals has a Zacks Rank of 2 (Buy) and has also shown strong earnings performance, beating consensus estimates by 33.33% [10][11].