Stoke Therapeutics (NASDAQ:STOK) adds US$56m to market cap in the past 7 days, though investors from a year ago are still down 43%
It's nice to see the Stoke Therapeutics, Inc. (NASDAQ:STOK) share price up 12% in a week. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 43% in the last year, well below the market return.
Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.
View our latest analysis for Stoke Therapeutics
Given that Stoke Therapeutics didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Stoke Therapeutics is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think Stoke Therapeutics will earn in the future (free analyst consensus estimates)
A Different Perspective
The last twelve months weren't great for Stoke Therapeutics shares, which performed worse than the market, costing holders 43%. The market shed around 23%, no doubt weighing on the stock price. Shareholders have lost 13% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. It's always interesting to track share price performance over the longer term. But to understand Stoke Therapeutics better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Stoke Therapeutics (of which 1 shouldn't be ignored!) you should know about.
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.
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