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If You Had Bought SpringWorks Therapeutics (NASDAQ:SWTX) Shares A Year Ago You'd Have Earned 110% Returns

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  • SWTX

It might be of some concern to shareholders to see the SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) share price down 16% in the last month. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 110% in that time. So we think most shareholders won't be too upset about the recent fall. The real question is whether the business is trending in the right direction.

Check out our latest analysis for SpringWorks Therapeutics

SpringWorks Therapeutics 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

This free interactive report on SpringWorks 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 SpringWorks Therapeutics shareholders have gained 110% over the last year. That's better than the more recent three month gain of 8.6%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). 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 4 warning signs with SpringWorks Therapeutics (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.

If you are like me, then you will 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.