Hollister Biosciences (CSE:HOLL) Shareholders Have Enjoyed An Impressive 115% Share Price Gain

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Hollister Biosciences Inc. (CSE:HOLL) share price had more than doubled in just one year - up 115%. It's up an even more impressive 190% over the last quarter. Hollister Biosciences hasn't been listed for long, so it's still not clear if it is a long term winner.

See our latest analysis for Hollister Biosciences

Hollister Biosciences isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Hollister Biosciences grew its revenue by 2,099% last year. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 115% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Hollister Biosciences stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Hollister Biosciences shareholders should be happy with the total gain of 115% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 190% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Hollister Biosciences you should be aware of, and 1 of them can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

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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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