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The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the Coherus BioSciences, Inc. (NASDAQ:CHRS) share price is up 24% in the last year, clearly besting than the market return of around 1.5% (not including dividends). That’s a solid performance by our standards! Having said that, the longer term returns aren’t so impressive, with stock gaining just 1.5% in three years.
Because Coherus BioSciences is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Coherus BioSciences grew its revenue by 2559% last year. That’s stonking growth even when compared to other loss-making stocks. While the share price gain of 24% over twelve months is pretty tasty, you might argue it doesn’t fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate Coherus BioSciences in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
This free interactive report on Coherus BioSciences’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We’re pleased to report that Coherus BioSciences rewarded shareholders with a total shareholder return of 24% over the last year. That’s better than the annualized TSR of 0.5% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Coherus BioSciences on your watchlist. If you would like to research Coherus BioSciences in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
But note: Coherus BioSciences 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 US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.