Investors in Arvinas (NASDAQ:ARVN) from a year ago are still down 57%, even after 5.4% gain this past week
Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Arvinas, Inc. (NASDAQ:ARVN) have suffered share price declines over the last year. To wit the share price is down 57% in that time. However, the longer term returns haven't been so bad, with the stock down 22% in the last three years. Furthermore, it's down 24% in about a quarter. That's not much fun for holders.
While the stock has risen 5.4% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
View our latest analysis for Arvinas
Because Arvinas 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. 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 year Arvinas saw its revenue grow by 396%. That's well above most other pre-profit companies. Meanwhile, the share price slid 57%. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Arvinas is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Arvinas will earn in the future (free analyst consensus estimates)
A Different Perspective
Arvinas shareholders are down 57% for the year, falling short of the market return. The market shed around 22%, no doubt weighing on the stock price. Shareholders have lost 7% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. 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. To that end, you should be aware of the 2 warning signs we've spotted with Arvinas .
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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