Despite currently being unprofitable, TG Therapeutics (NASDAQ:TGTX) has delivered a 494% return to shareholders over 3 years

By
Simply Wall St
Published
November 14, 2021
NasdaqCM:TGTX
Source: Shutterstock

TG Therapeutics, Inc. (NASDAQ:TGTX) shareholders might be concerned after seeing the share price drop 11% in the last week. But that doesn't displace its brilliant performance over three years. In fact, the share price has taken off in that time, up 494%. So the recent fall doesn't do much to dampen our respect for the business. Only time will tell if there is still too much optimism currently reflected in the share price.

While the stock has fallen 11% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

Check out our latest analysis for TG Therapeutics

TG 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.

TG Therapeutics' revenue trended up 123% each year over three years. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 81% per year in that time. It's always tempting to take profits after a share price gain like that, but high-growth companies like TG Therapeutics can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqCM:TGTX Earnings and Revenue Growth November 15th 2021

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

A Different Perspective

TG Therapeutics shareholders gained a total return of 7.9% during the year. But that return falls short of the market. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 40% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. It's always interesting to track share price performance over the longer term. But to understand TG Therapeutics better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for TG Therapeutics you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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