Introducing Cerus (NASDAQ:CERS), A Stock That Climbed 22% In The Last Year
Cerus Corporation (NASDAQ:CERS) shareholders might be concerned after seeing the share price drop 15% in the last quarter. Taking a longer term view we see the stock is up over one year. In that time, it is up 22%, which isn't bad, but is below the market return of 66%.
View our latest analysis for Cerus
Because Cerus 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Cerus grew its revenue by 23% last year. That's a fairly respectable growth rate. The share price gain of 22% seems pretty muted, considering the growth. Arguably, the market (previously) expected stronger growth from the company. But this one could be a worth watching - a maiden profit would likely catch the market's attention.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Cerus' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Cerus shareholders are up 22% for the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 0.5% endured over half a decade. So this might be a sign the business has turned its fortunes around. 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. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Cerus you should know about.
Of course Cerus 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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