ImmunoPrecise Antibodies Ltd. (CVE:IPA) shareholders might be concerned after seeing the share price drop 23% in the last quarter. But that isn't a problem when you consider how the share price has soared over the last year. In fact, it is up 327% in that time. Arguably, the recent fall is to be expected after such a strong rise. While winners often keep winning, it can pay to be cautious after a strong rise.
ImmunoPrecise Antibodies wasn't profitable in the last twelve months, 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.
ImmunoPrecise Antibodies grew its revenue by 37% last year. We respect that sort of growth, no doubt. Arguably it's more than reflected in the truly wondrous share price gain of 327% in the last year. While we are always careful about jumping on a hot stock too late, there's certainly good reason to keep an eye on ImmunoPrecise Antibodies.
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 ImmunoPrecise Antibodies stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that ImmunoPrecise Antibodies rewarded shareholders with a total shareholder return of 327% over the last year. That's better than the annualized TSR of 61% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting ImmunoPrecise Antibodies on your watchlist. 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. For instance, we've identified 3 warning signs for ImmunoPrecise Antibodies (1 doesn't sit too well with us) that you should be aware of.
But note: ImmunoPrecise Antibodies may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
If you decide to trade ImmunoPrecise Antibodies, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.