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Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We really hate to see fellow investors lose their hard-earned money. Spare a thought for those who held Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) for five whole years - as the share price tanked 88%. And we doubt long term believers are the only worried holders, since the stock price has declined 26% over the last twelve months. Shareholders have had an even rougher run lately, with the share price down 48% in the last 90 days.
While a drop like that is definitely a body blow, money isn't as important as health and happiness.
Because Ekso Bionics Holdings 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.
In the last half decade, Ekso Bionics Holdings saw its revenue increase by 13% per year. That's a fairly respectable growth rate. So it is unexpected to see the stock down 34% per year in the last five years. The truth is that the growth might be below expectations, and investors are probably worried about the continual losses.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
This free interactive report on Ekso Bionics Holdings's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Ekso Bionics Holdings shareholders are down 26% for the year, but the market itself is up 6.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 34% doled out over the last five years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. If you would like to research Ekso Bionics Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course Ekso Bionics Holdings 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.
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 firstname.lastname@example.org. 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.