Stock Analysis

Introducing CRISPR Therapeutics (NASDAQ:CRSP), The Stock That Soared 424% In The Last Three Years

NasdaqGM:CRSP
Source: Shutterstock

We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. Take, for example, the CRISPR Therapeutics AG (NASDAQ:CRSP) share price, which skyrocketed 424% over three years. In more good news, the share price has risen 1.7% in thirty days.

View our latest analysis for CRISPR Therapeutics

We don't think that CRISPR Therapeutics' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Over the last three years CRISPR Therapeutics has grown its revenue at 101% annually. That's well above most pre-profit companies. And it's not just the revenue that is taking off. The share price is up 74% per year in that time. Despite the strong run, top performers like CRISPR Therapeutics 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).

earnings-and-revenue-growth
NasdaqGM:CRSP Earnings and Revenue Growth October 16th 2020

CRISPR Therapeutics is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think CRISPR Therapeutics will earn in the future (free analyst consensus estimates)

A Different Perspective

Pleasingly, CRISPR Therapeutics' total shareholder return last year was 163%. So this year's TSR was actually better than the three-year TSR (annualized) of 74%. The improving returns to shareholders suggests the stock is becoming more popular with time. 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 2 warning signs for CRISPR Therapeutics that you should be aware of before investing here.

But note: CRISPR Therapeutics 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.

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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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