If You Had Bought Clearside Biomedical (NASDAQ:CLSD) Shares A Year Ago You'd Have Earned 45% Returns

The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Clearside Biomedical, Inc. (NASDAQ:CLSD) share price is 45% higher than it was a year ago, much better than the market return of around 27% (not including dividends) in the same period. So that should have shareholders smiling. On the other hand, longer term shareholders have had a tougher run, with the stock falling 39% in three years.

View our latest analysis for Clearside Biomedical

Clearside Biomedical isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. 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.

In the last year Clearside Biomedical saw its revenue grow by 3,387%. That's a head and shoulders above most loss-making companies. The solid 45% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Clearside Biomedical. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

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

It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So it makes a lot of sense to check out what analysts think Clearside Biomedical will earn in the future (free profit forecasts).

A Different Perspective

It's nice to see that Clearside Biomedical shareholders have gained 45% (in total) over the last year. What is absolutely clear is that is far preferable to the dismal 12% average annual loss suffered over the last three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. It's always interesting to track share price performance over the longer term. But to understand Clearside Biomedical better, we need to consider many other factors. For instance, we've identified 4 warning signs for Clearside Biomedical (1 is a bit unpleasant) that you should be aware of.

Clearside Biomedical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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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