The nature of investing is that you win some, and you lose some. And there's no doubt that HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) stock has had a really bad year. The share price has slid 54% in that time. To make matters worse, the returns over three years have also been really disappointing (the share price is 39% lower than three years ago). Shareholders have had an even rougher run lately, with the share price down 42% in the last 90 days.
Given that HTG Molecular Diagnostics didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year HTG Molecular Diagnostics saw its revenue grow by 17%. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 54% in that time. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at HTG Molecular Diagnostics's financial health with this free report on its balance sheet.
A Different Perspective
The last twelve months weren't great for HTG Molecular Diagnostics shares, which cost holders 54%, while the market was up about 5.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 15% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
But note: HTG Molecular Diagnostics may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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.