If You Had Bought AC Immune's (NASDAQ:ACIU) Shares Three Years Ago You Would Be Down 61%

Investing in stocks inevitably means buying into some companies that perform poorly. But the long term shareholders of AC Immune SA (NASDAQ:ACIU) have had an unfortunate run in the last three years. Sadly for them, the share price is down 61% in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 39% lower in that time. Furthermore, it's down 45% in about a quarter. That's not much fun for holders.

See our latest analysis for AC Immune

Given that AC Immune didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over three years, AC Immune grew revenue at 41% per year. That's well above most other pre-profit companies. The share price has moved in quite the opposite direction, down 17% over that time, a bad result. It seems likely that the market is worried about the continual losses. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.

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 AC Immune stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

AC Immune shareholders are down 39% for the year, but the broader market is up 22%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 17% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 4 warning signs we've spotted with AC Immune (including 1 which is shouldn'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 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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