Addition to WinInStock portfolio: CORT stock analysis, predictions, value
- WinInStocks
- Mar 16, 2021
- 3 min read
Updated: May 1
Another addition to my portfolio is CORT.
Why did CORT pique my interest?
I was looking at the different screeners looking for another stock that may double in the next 2-3 years. As you may have noticed from my previous stock picks I often look for the stocks that may double or even triple in the next 2-3 years. However, very often it happens so that the stocks start moving much faster and achieve my target prices within one year.
Based on predictions from analysts the EPS for CORT is going to more than double in the next 3 years. With that, I expect the stock price to potentially double.
Also, when researching the stock I stumbled upon the following article: https://seekingalpha.com/article/4411997-corcept-major-upcoming-catalysts
Corcept Therapeutics Business Profile
Corcept Therapeutics Incorporated discovers, develops, and commercializes drugs for the treatment of severe metabolic, oncologic, and psychiatric disorders in the United States. The company offers Korlym (mifepristone) tablets as a once-daily oral medication for the treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing’s syndrome, who have type 2 diabetes mellitus or glucose intolerance, and have failed surgery or are not candidates for surgery. It is developing relacorilant that is in Phase III clinical trial to treat patients with Cushing’s syndrome; and Abraxane in combination with relacorilant, which is in Phase II clinical trial to treat patients with serous ovarian tumors, as well as in Phase I/II clinical trial for the treatment of solid tumors. The company is also developing selective cortisol modulator combined with Xtandi that is in open label dose finding trial to treat patients with metastatic castration-resistant prostate cancer; selective cortisol modulator that is in Phase II for the treatment of antipsychotic-induced weight gain; and FKBP5 gene expression assays. Corcept Therapeutics Incorporated was founded in 1998 and is headquartered in Menlo Park, California.
The stock price chart for CORT built a nice cup formation over the past 3 years. Arguably it has finished building a handle and we should see price movement in the next year.
Corcept Therapeutics Financial overview
When adding for stocks in the biotech industry I try to look for the companies that already have products that bring revenue. In addition, we want to have some products in the pipeline. In the case of Corcept Therapeutics, the company has been growing its revenues using its current products. However, sales growth was declining over the past few years. It is also positive that the company is already profitable. It has also been growing its sales while increasing Research Expenses.
Even with the current EPS and the price of $25.79, the stock is trading at a P/E ratio of 30.
However, there are more products in the pipeline for Corcept Therapeutics as seen here:
Corcept Therapeutics has been aggressively hiring for the anticipated growth.
It currently has 235 employees, 47 of which were hired over the past 12 months. In addition, it currently has 13 open positions.
Source: https://www.corcept.com/careers/
CORT Stock Forward Outlook and Predictions
Analysts predict revenue and earnings for Corcept Therapeutics will continue to grow nicely over the next few years.
With growing revenues, CORT EPS is expected to grow to $2.355 per share.
CORT stock Key financial ratings/Stock Value
As mentioned before, CORT has a PE ratio of 30 at the moment which is in line with the US Pharmaceuticals industry average. If it grows its EPS to $2.355 as expected, we could see the price for CORT grow to a range of $47 (at a PE of 20) to $70 (at a PE of 30). Now, the timing for this growth is quite long given the EPS of $2.355 is expected only at the end of 2025. However, given the pipeline, if CORT is successful with any of its Phase 3/Phase 2 drugs we could see the price for the stock accelerate much faster.
CORT stock Analysts Ratings
There are 5 analysts covering CORT stock with an average "BUY" rating and an average price target of $33.5
Disclaimer: As usual, trade at your own risk. I own CORT stock. I do not suggest you should buy any of the stocks I write about. As usual, please do your own due diligence before investing your own money in any of the stocks I write about. The above analysis is quite basic and just gives ideas for further research. A much deeper analysis is required for each stock, including the analysis of operations, debt, etc. I may sell any of the stocks I say I currently own at any moment before it reaches the targets that I set or keep them for even when they reach the target.
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