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Is Sage Therapeutics's (NASDAQ:SAGE) 287% Share Price Increase Well Justified?

Simply Wall St

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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. To wit, the Sage Therapeutics, Inc. (NASDAQ:SAGE) share price has flown 287% in the last three years. That sort of return is as solid as granite.

See our latest analysis for Sage Therapeutics

Because Sage Therapeutics 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.


The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

NasdaqGM:SAGE Income Statement, July 9th 2019

Sage Therapeutics is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Sage Therapeutics stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

It's nice to see that Sage Therapeutics shareholders have gained 9.1% (in total) over the last year. But the three year TSR of 57% per year is even better. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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.

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 editorial-team@simplywallst.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.