The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. For instance the Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) share price is 201% higher than it was three years ago. How nice for those who held the stock! It’s also good to see the share price up 36% over the last quarter. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report.
Check out our latest analysis for Pieris Pharmaceuticals
Pieris Pharmaceuticals isn’t a profitable company, so it is unlikely we’ll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last three years Pieris Pharmaceuticals has grown its revenue at 61% annually. That’s well above most pre-profit companies. Along the way, the share price gained 44% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That’s not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
Take a more thorough look at Pieris Pharmaceuticals’s financial health with this free report on its balance sheet.
A Different Perspective
Over the last year, Pieris Pharmaceuticals shareholders took a loss of 1.4%. In contrast the market gained about 2.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Investors are up over three years, booking 44% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it’s turns out to be an opportunity, but you really need to be sure that the quality is there. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.