Recent 4.4% pullback isn't enough to hurt long-term Arcutis Biotherapeutics (NASDAQ:ARQT) shareholders, they're still up 118% over 1 year

Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) share price has soared 118% return in just a single year. It's also good to see the share price up 53% over the last quarter. On the other hand, longer term shareholders have had a tougher run, with the stock falling 11% in three years.

Although Arcutis Biotherapeutics has shed US$71m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for Arcutis Biotherapeutics

Given that Arcutis Biotherapeutics 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Arcutis Biotherapeutics saw its revenue grow by 183%. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 118% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

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 Arcutis Biotherapeutics stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Arcutis Biotherapeutics shareholders have received a total shareholder return of 118% over the last year. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Arcutis Biotherapeutics better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Arcutis Biotherapeutics you should know about.

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 American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.