If You Had Bought Profound Medical (TSE:PRN) Stock Three Years Ago, You'd Be Sitting On A 50% Loss, Today
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The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term Profound Medical Corp. (TSE:PRN) shareholders have had a particularly rough ride in the last three year. Regrettably, they have had to cope with a 50% drop in the share price over that period. And more recent buyers are having a tough time too, with a drop of 32% in the last year. Unfortunately the share price momentum is still quite negative, with prices down 19% in thirty days.
Check out our latest analysis for Profound Medical
Because Profound Medical is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Profound Medical in this interactive graph of future profit estimates.
A Different Perspective
Profound Medical shareholders are down 32% for the year, but the broader market is up 0.6%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. The three-year loss of 21% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
