Akebia Therapeutics (NASDAQ:AKBA) shareholder returns have been splendid, earning 188% in 1 year
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Akebia Therapeutics, Inc. (NASDAQ:AKBA) share price has soared 188% return in just a single year. It's also good to see the share price up 60% over the last quarter. Zooming out, the stock is actually down 89% in the last three years.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
Check out our latest analysis for Akebia Therapeutics
Because Akebia Therapeutics made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year Akebia Therapeutics saw its revenue grow by 22%. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 188%. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Akebia Therapeutics' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Akebia Therapeutics shareholders have received a total shareholder return of 188% over the last year. That certainly beats the loss of about 13% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Akebia Therapeutics (of which 3 are a bit concerning!) you should know about.
But note: Akebia Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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.
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