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Shareholders in Oramed Pharmaceuticals (NASDAQ:ORMP) have lost 58%, as stock drops 22% this past week

Investing in stocks comes with the risk that the share price will fall. And there's no doubt that Oramed Pharmaceuticals Inc. (NASDAQ:ORMP) stock has had a really bad year. To wit the share price is down 58% in that time. On the other hand, the stock is actually up 36% over three years. It's down 61% in about a quarter.

With the stock having lost 22% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

Check out our latest analysis for Oramed Pharmaceuticals

Oramed Pharmaceuticals 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

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

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at Oramed Pharmaceuticals' financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that Oramed Pharmaceuticals shareholders are down 58% for the year. Unfortunately, that's worse than the broader market decline of 10%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Oramed Pharmaceuticals better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with Oramed Pharmaceuticals , and understanding them should be part of your investment process.

Of course Oramed Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.