Jounce Therapeutics (NASDAQ:JNCE) Shareholders Have Enjoyed An Impressive 163% Share Price Gain

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Jounce Therapeutics, Inc. (NASDAQ:JNCE) share price has soared 163% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 91% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. On the other hand, longer term shareholders have had a tougher run, with the stock falling 41% in three years.

Check out our latest analysis for Jounce Therapeutics

Jounce Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Jounce Therapeutics saw its revenue shrink by 58%. We're a little surprised to see the share price pop 163% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Jounce Therapeutics' financial health with this free report on its balance sheet.

A Different Perspective

Pleasingly, Jounce Therapeutics' total shareholder return last year was 163%. That certainly beats the loss of about 12% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. 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. Take risks, for example - Jounce Therapeutics has 5 warning signs (and 1 which is significant) we think you should know about.

But note: Jounce 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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