Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Some stocks are best avoided. It hits us in the gut when we see fellow investors suffer a loss. Imagine if you held Puma Biotechnology, Inc. (NASDAQ:PBYI) for half a decade as the share price tanked 78%. We also note that the stock has performed poorly over the last year, with the share price down 73%. Furthermore, it’s down 66% in about a quarter. That’s not much fun for holders.
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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Depicted in the graphic below, you’ll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
Take a more thorough look at Puma Biotechnology’s financial health with this free report on its balance sheet.
A Different Perspective
While the broader market gained around 3.1% in the last year, Puma Biotechnology shareholders lost 73%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year’s performance caps off a bad run, with the shareholders facing a total loss of 26% 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.
Of course Puma Biotechnology may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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 email@example.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.