If You Had Bought Puma Biotechnology (NASDAQ:PBYI) Stock Five Years Ago, You'd Be Sitting On A 97% Loss, Today

Long term investing works well, but it doesn't always work for each individual stock. We really hate to see fellow investors lose their hard-earned money. For example, we sympathize with anyone who was caught holding Puma Biotechnology, Inc. (NASDAQ:PBYI) during the five years that saw its share price drop a whopping 97%. And we doubt long term believers are the only worried holders, since the stock price has declined 83% over the last twelve months. On top of that, the share price has dropped a further 36% in a month.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

Check out our latest analysis for Puma Biotechnology

Given that Puma Biotechnology 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.

The company's revenue and earnings (over time) are depicted in the image below.

If you are thinking of buying or selling Puma Biotechnology stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 10% in the last year, Puma Biotechnology shareholders lost 83%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 51% per year over five years. 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. If you would like to research Puma Biotechnology in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

We will like Puma Biotechnology better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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.

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 editorial-team@simplywallst.com. 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.