Did You Miss NanoString Technologies' (NASDAQ:NSTG) Impressive 151% Share Price Gain?
It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you can more than double your money. For instance the NanoString Technologies, Inc. (NASDAQ:NSTG) share price is 151% higher than it was three years ago. That sort of return is as solid as granite. On top of that, the share price is up 21% in about a quarter. But this could be related to the strong market, which is up 20% in the last three months.
See our latest analysis for NanoString Technologies
NanoString Technologies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years NanoString Technologies has grown its revenue at 7.2% annually. Considering the company is losing money, we think that rate of revenue growth is uninspiring. In comparison, the share price rise of 36% per year over the last three years is pretty impressive. We'd need to take a closer look at the revenue and profit trends to see whether the improvements might justify that sort of increase. It may be that the market is pretty optimistic about NanoString Technologies if you look to the bottom line.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
It's good to see that NanoString Technologies has rewarded shareholders with a total shareholder return of 31% in the last twelve months. That gain is better than the annual TSR over five years, which is 18%. 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. 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. Even so, be aware that NanoString Technologies is showing 2 warning signs in our investment analysis , you should know about...
Of course NanoString Technologies 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.
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. 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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