Shareholders in Kymera Therapeutics (NASDAQ:KYMR) have lost 11%, as stock drops 8.8% this past week

The simplest way to benefit from a rising market is to buy an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. For example, the Kymera Therapeutics, Inc. (NASDAQ:KYMR) share price is down 11% in the last year. That's well below the market decline of 0.6%. We wouldn't rush to judgement on Kymera Therapeutics because we don't have a long term history to look at. The last month has also been disappointing, with the stock slipping a further 19%.

After losing 8.8% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Kymera Therapeutics

Kymera Therapeutics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last twelve months, Kymera Therapeutics increased its revenue by 114%. That's well above most other pre-profit companies. Given the revenue growth, the share price drop of 11% seems quite harsh. Our sympathies to shareholders who are now underwater. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Kymera 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 Kymera Therapeutics will earn in the future (free analyst consensus estimates)

A Different Perspective

Kymera Therapeutics shareholders are down 11% for the year, even worse than the market loss of 0.6%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 8.8% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Kymera Therapeutics better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Kymera Therapeutics you should be aware of, and 1 of them makes us a bit uncomfortable.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.