REGENXBIO Inc. (NASDAQ:RGNX) shareholders have seen the share price descend 22% over the month. But in three years the returns have been great. In three years the stock price has launched 203% higher: a great result. So the recent fall in the share price should be viewed in that context. If the business can perform well for years to come, then the recent drop could be an opportunity.
Because REGENXBIO is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.
In the last 3 years REGENXBIO saw its revenue grow at 79% per year. That’s well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 45% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we’d say REGENXBIO is still worth investigating – successful businesses can often keep growing for long periods.
This free interactive report on REGENXBIO’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
REGENXBIO shareholders are down 44% for the year, but the broader market is up 1.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Fortunately the longer term story is brighter, with total returns averaging about 45% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
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.
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