Pharmaceutical stock Collegium Pharmaceutical is Tuesday's IBD 50 Stocks To Watch pick as shares reached a buy zone after a strong earnings report. Analysts are high on the company.
Collegium stock gapped up 10.8% in heavy volume and broke out of a flat base on Friday after the drugmaker reported better-than-expected fourth-quarter earnings and sales late Thursday. Shares exceeded the 34.96 buy point and are trading around the top of the 5% buy zone reaching to 36.71. The stock reclaimed its 50-day moving average on the jump.
Shares got a boost on Monday after Truist raised its price target to 40 from 37 and maintained its buy rating while Piper Sandler lifted its target top to 39 from 37 with an overweight rating.
The pharmaceutical stock hit a 52-week high on Monday in heavy trading before retreating.
Pharmaceutical Stock: Earnings Growth Picking Up
Fourth-quarter earnings grew a robust 45%, up from 22% and 18% in the prior two quarters. Meanwhile sales grew 10%, rising from 8% in the previous quarter and equaling the 10% increase from two periods ago. Full-year 2023 net revenue was $566.8 million vs. $463.9 million in 2022, representing 22% annual growth.
Collegium reaffirmed its full-year 2024 outlook for net revenue of $580 million to $595 million. The company expects record revenue fueled by its chronic pain relieving drugs Belbuca and Xtampza.
"Our focus in 2024 is on operational execution. We are committed to achieving our financial guidance and deploying capital to create value for our shareholders," Chief Executive Joe Ciaffoni said in the earnings release.
The pharmaceutical stock holds a best-possible 99 Composite Rating and a 96 EPS Rating from Investor's Business Daily.
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