The 7.1% return this week takes Protagonist Therapeutics' (NASDAQ:PTGX) shareholders five-year gains to 175%

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. For example, the Protagonist Therapeutics, Inc. (NASDAQ:PTGX) share price has soared 175% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 36% gain in the last three months.

Since it's been a strong week for Protagonist Therapeutics shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Protagonist Therapeutics

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the five years of share price growth, Protagonist Therapeutics moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Protagonist Therapeutics has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Protagonist Therapeutics will grow revenue in the future.

A Different Perspective

We're pleased to report that Protagonist Therapeutics shareholders have received a total shareholder return of 70% over one year. That gain is better than the annual TSR over five years, which is 22%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Protagonist Therapeutics better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Protagonist Therapeutics you should be aware of, and 1 of them can't be ignored.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com