Stock Analysis
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- NasdaqGS:BBIO
The 4.5% return this week takes BridgeBio Pharma's (NASDAQ:BBIO) shareholders three-year gains to 308%
For us, stock picking is in large part the hunt for the truly magnificent stocks. But when you hold the right stock for the right time period, the rewards can be truly huge. One such superstar is BridgeBio Pharma, Inc. (NASDAQ:BBIO), which saw its share price soar 308% in three years. Also pleasing for shareholders was the 31% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
Check out our latest analysis for BridgeBio Pharma
BridgeBio Pharma 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
BridgeBio Pharma's revenue trended up 49% each year over three years. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 60% per year in that time. Despite the strong run, top performers like BridgeBio Pharma have been known to go on winning for decades. So we'd recommend you take a closer look at this one, or even put it on your watchlist.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
BridgeBio Pharma is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling BridgeBio Pharma stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
It's nice to see that BridgeBio Pharma shareholders have received a total shareholder return of 19% over the last year. That's better than the annualised return of 8% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. For example, we've discovered 3 warning signs for BridgeBio Pharma (2 don't sit too well with us!) that you should be aware of before investing here.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.
Valuation is complex, but we're here to simplify it.
Discover if BridgeBio Pharma might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About NasdaqGS:BBIO
BridgeBio Pharma
A commercial-stage biopharmaceutical company, discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers.