Would Shareholders Who Purchased Allogene Therapeutics' (NASDAQ:ALLO) Stock Year Be Happy With The Share price Today?
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. For example, the Allogene Therapeutics, Inc. (NASDAQ:ALLO) share price is down 40% in the last year. That contrasts poorly with the market return of 37%. We wouldn't rush to judgement on Allogene Therapeutics because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 23% in the last 90 days.
View our latest analysis for Allogene Therapeutics
Allogene Therapeutics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Allogene Therapeutics is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Allogene Therapeutics stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
Given that the market gained 37% in the last year, Allogene Therapeutics shareholders might be miffed that they lost 40%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 23%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Allogene Therapeutics better, we need to consider many other factors. For instance, we've identified 4 warning signs for Allogene Therapeutics that you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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