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The nature of investing is that you win some, and you lose some. And there’s no doubt that Harvard Bioscience, Inc. (NASDAQ:HBIO) stock has had a really bad year. The share price has slid 64% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 38% in that time. Furthermore, it’s down 57% in about a quarter. That’s not much fun for holders.
Given that Harvard Bioscience 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Harvard Bioscience grew its revenue by 42% over the last year. That’s definitely a respectable growth rate. Meanwhile, the share price tanked 64%, suggesting the market had much higher expectations. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn’t enough to just look at revenue, anyway. Always consider when profits will flow.
We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It’s always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think Harvard Bioscience will earn in the future (free profit forecasts).
A Different Perspective
Harvard Bioscience shareholders are down 64% for the year, but the market itself is up 7.1%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year’s performance may indicate unresolved challenges, given that it was worse than the annualised loss of 17% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Before spending more time on Harvard Bioscience it might be wise to click here to see if insiders have been buying or selling shares.
But note: Harvard Bioscience 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 firstname.lastname@example.org. 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.