Shares of Collegium Pharmaceutical (COLL Quick QuoteCOLL - Free Report) have been strong performers lately, with the stock up 33.5% over the past month. The stock hit a new 52-week high of $48.37 in the previous session. Collegium Pharmaceutical has gained 67% since the start of the year compared to the 7% gain for the Zacks Medical sector and the 7.7% return for the Zacks Medical - Drugs industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2025, Collegium Pharmaceutical reported EPS of $2.25 versus consensus estimate of $1.88 while it beat the consensus revenue estimate by 10.35%.

For the current fiscal year, Collegium Pharmaceutical is expected to post earnings of $7.55 per share on $783.93 in revenues. This represents a 17.05% change in EPS on a 24.15% change in revenues. For the next fiscal year, the company is expected to earn $7.4 per share on $807.27 in revenues. This represents a year-over-year change of -2.03% and 2.98%, respectively.

Valuation Metrics

While Collegium Pharmaceutical has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Collegium Pharmaceutical has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 6.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 19.3X. On a trailing cash flow basis, the stock currently trades at 3.9X versus its peer group's average of 15.9X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Collegium Pharmaceutical an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Collegium Pharmaceutical currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Collegium Pharmaceutical passes the test. Thus, it seems as though Collegium Pharmaceutical shares could still be poised for more gains ahead.

How Does COLL Stack Up to the Competition?

Shares of COLL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Catalyst Pharmaceuticals, Inc. (CPRX Quick QuoteCPRX - Free Report) . CPRX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of F.

Earnings were strong last quarter. Catalyst Pharmaceuticals, Inc. beat our consensus estimate by 33.33%, and for the current fiscal year, CPRX is expected to post earnings of $2.54 per share on revenue of $576.38 million.

Shares of Catalyst Pharmaceuticals, Inc. have gained 8% over the past month, and currently trade at a forward P/E of 9.54X and a P/CF of 9.44X.

The Medical - Drugs industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for COLL and CPRX, even beyond their own solid fundamental situation.