ADC Therapeutics (NYSE:ADCT) shareholders are up 10% this past week, but still in the red over the last year

By
Simply Wall St
Published
December 24, 2021
NYSE:ADCT
Source: Shutterstock

This week we saw the ADC Therapeutics SA (NYSE:ADCT) share price climb by 10%. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 43% in the last year, well below the market return.

The recent uptick of 10% could be a positive sign of things to come, so let's take a lot at historical fundamentals.

View our latest analysis for ADC Therapeutics

Given that ADC Therapeutics 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. Shareholders of unprofitable companies usually expect strong revenue growth. 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 (click to see the exact numbers).

earnings-and-revenue-growth
NYSE:ADCT Earnings and Revenue Growth December 24th 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Given that the market gained 21% in the last year, ADC Therapeutics shareholders might be miffed that they lost 43%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 25%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with ADC Therapeutics .

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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