The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term G1 Therapeutics, Inc. (NASDAQ:GTHX) shareholders have had a particularly rough ride in the last three year. Unfortunately, they have held through a 57% decline in the share price in that time. Shareholders have had an even rougher run lately, with the share price down 20% in the last 90 days. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
G1 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for G1 Therapeutics in this interactive graph of future profit estimates.
A Different Perspective
Over the last year G1 Therapeutics shareholders have received a TSR of 19%. Unfortunately this falls short of the market return of around 48%. On the bright side, that's certainly better than the yearly loss of about 16% endured over the last three years, implying that the company is doing better recently. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with G1 Therapeutics , and understanding them should be part of your investment process.
G1 Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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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