The one-year earnings decline has likely contributed toKeros Therapeutics' (NASDAQ:KROS) shareholders losses of 12% over that period
You can invest in an index fund if you want to make sure your returns approximately match the overall market. In contrast individual stocks will provide a wide range of possible returns, and may fall short. For example, that's what happened with Keros Therapeutics, Inc. (NASDAQ:KROS) over the last year - it's share price is down 12% versus a market decline of 10%. Keros Therapeutics may have better days ahead, of course; we've only looked at a one year period. The last month has also been disappointing, with the stock slipping a further 33%. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
Since Keros Therapeutics has shed US$288m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
View our latest analysis for Keros Therapeutics
Keros Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We doubt Keros Therapeutics shareholders are happy with the loss of 12% over twelve months. That falls short of the market, which lost 10%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's worth noting that the last three months did the real damage, with a 16% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. It's always interesting to track share price performance over the longer term. But to understand Keros Therapeutics better, we need to consider many other factors. For example, we've discovered 4 warning signs for Keros Therapeutics (1 is concerning!) that you should be aware of before investing here.
We will like Keros Therapeutics better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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.
