If You Had Bought Gritstone bio (NASDAQ:GRTS) Stock A Year Ago, You Could Pocket A 108% Gain Today
It might be of some concern to shareholders to see the Gritstone bio, Inc. (NASDAQ:GRTS) share price down 25% in the last month. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 108% in that time. So it may be that the share price is simply cooling off after a strong rise. More important, going forward, is how the business itself is going.
See our latest analysis for Gritstone bio
Gritstone bio isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Gritstone bio's revenue grew by 892%. That's stonking growth even when compared to other loss-making stocks. Meanwhile, the market has paid attention, sending the share price soaring 108% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Gritstone bio shareholders should be happy with the total gain of 108% over the last twelve months. Unfortunately the share price is down 20% over the last quarter. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand Gritstone bio better, we need to consider many other factors. Case in point: We've spotted 5 warning signs for Gritstone bio you should be aware of, and 2 of them are concerning.
Of course Gritstone bio may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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