Would Shareholders Who Purchased Exagen's (NASDAQ:XGN) Stock Year Be Happy With The Share price Today?

It's nice to see the Exagen Inc. (NASDAQ:XGN) share price up 15% in a week. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 42% in a year, falling short of the returns you could get by investing in an index fund.

See our latest analysis for Exagen

Because Exagen made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Exagen's revenue didn't grow at all in the last year. In fact, it fell 0.8%. That looks pretty grim, at a glance. The stock price has languished lately, falling 42% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

While Exagen shareholders are down 42% for the year, the market itself is up 22%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Putting aside the last twelve months, it's good to see the share price has rebounded by 12%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Exagen better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Exagen you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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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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