Corcept Therapeutics rebounded from its 50-day moving average after third-quarter results on Oct. 30 and reached an all-time high before building a base. Now, the stock is nearing a buy point of 62.22 in a cup base, making the medical stock Wednesday's selection for IBD 50 Stocks To Watch.
One other positive for investors is that shares rebounded from the 50-day moving average again on Tuesday to build the right side of the base in one giant leap.
The early-stage base can net higher gains after a breakout, especially since other chart signals are showing strength in the price action.
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The stock boasts strong outperformance on two counts: the relative strength line is at a new high, displaying a blue dot, and shows Corcept's strong gains when compared with the benchmark S&P 500. The stock has also outperformed 97% of stocks in the Investor's Business Daily database.
Sales and earnings growth have been steady over the past four quarters as the stock rallied to its all-time high. That is helping the stock score a Composite Rating of 95.
Corcept Therapeutics: Limiting Stress Hormone
Corcept Therapeutics makes drugs that modulate cortisol to treat certain diseases by blocking the site where cortisol binds to a receptor. Cortisol is also known as the stress hormone but excessive amounts can lead to a range of disorders and diseases.
According to Chief Executive Joseph Belanoff, screening for hypercortisolism is "becoming more common and the number of patients receiving appropriate care continues to increase."
Corcept's EPS Rating of 85 is adequate. Third quarter sales rose 48% to $182.6 million while earnings per share of 41 cents were 46% higher than the prior year. Corcept increased its revenue guidance for the full year to $690 million at the midpoint.
Mutual funds own 60% of outstanding shares. More funds have been net buyers of the stock over the past two quarters. Fund purchases have also been moderate over the most recent 13 weeks, giving the stock an Accumulation/Distribution Rating of C+.
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