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Twist Bioscience Corporation (NASDAQ:TWST) shareholders might be concerned after seeing the share price drop 29% in the last month. But that isn't a problem when you consider how the share price has soared over the last year. In that time, shareholders have had the pleasure of a 327% boost to the share price. So it is not that surprising to see the stock retrace a little. While winners often keep winning, it can pay to be cautious after a strong rise.
Because Twist Bioscience 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Twist Bioscience saw its revenue grow by 68%. That's stonking growth even when compared to other loss-making stocks. But the share price has really rocketed in response gaining 327% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on Twist Bioscience's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Twist Bioscience boasts a total shareholder return of 327% for the last year. That's better than the more recent three month gain of 36%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). It's always interesting to track share price performance over the longer term. But to understand Twist Bioscience better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Twist Bioscience (including 1 which makes us a bit uncomfortable) .
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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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