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Collegium Pharmaceutical, Inc. (COLL) has seen a significant increase in stock value, currently trading at approximately $45 per share, up nearly 60% year-to-date. The company is recognized for its strong momentum and is classified as a Zacks Rank #1 (Strong Buy) stock, appealing to investors seeking defensive positions amid broader market concerns related to inflation data and potential economic slowdowns.
Collegium specializes in pain management drugs with an abuse-deterrent formulation and reports impressive net income margins, maintaining around 8.56% over the last five years compared to the industry average of 4.53%. Despite this sharp year-to-date rally, COLL trades at a forward earnings multiple of just 6X, significantly below the S&P 500’s 18X, indicating potential for future growth.
Following recent earnings that exceeded expectations, Collegium has raised its full-year revenue guidance, with FY25 EPS revisions increasing from $7.08 to $7.55, reflecting a projected 17% growth from the previous year. Market shifts suggest that healthcare stocks like Collegium may serve as a more favorable investment amidst ongoing economic uncertainty.
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