A Look At Exagen's (NASDAQ:XGN) Share Price Returns
Exagen Inc. (NASDAQ:XGN) shareholders should be happy to see the share price up 19% in the last month. But in truth the last year hasn't been good for the share price. After all, the share price is down 14% in the last year, significantly under-performing the market.
Check out our latest analysis for Exagen
Because Exagen 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 just one year Exagen saw its revenue fall by 0.8%. That looks pretty grim, at a glance. The stock price has languished lately, falling 14% in a year. What would you expect when revenue is falling, and it doesn't make a profit? It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.
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 Exagen's financial health with this free report on its balance sheet.
A Different Perspective
While Exagen shareholders are down 14% for the year, the market itself is up 29%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 18% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Exagen better, we need to consider many other factors. Even so, be aware that Exagen is showing 2 warning signs in our investment analysis , you should know about...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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