Yahoo Finance Investors one-year losses grow to 57% as the stock sheds US$66m this past week
The nature of investing is that you win some, and you lose some. And unfortunately for Bioventus Inc. (NASDAQ:BVS) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 57% in that time. We wouldn't rush to judgement on Bioventus 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 48% in the last 90 days.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
Check out our latest analysis for Bioventus
Bioventus isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
In the last year Bioventus saw its revenue grow by 44%. That's definitely a respectable growth rate. Meanwhile, the share price tanked 57%, suggesting the market had much higher expectations. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. For us it's important to consider when you think a company will become profitable, if you're basing your valuation on revenue.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling Bioventus stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We doubt Bioventus shareholders are happy with the loss of 57% over twelve months. That falls short of the market, which lost 20%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 48% over the last three months, the market doesn't seem to believe that the company has solved all its problems. 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 Bioventus better, we need to consider many other factors. For instance, we've identified 3 warning signs for Bioventus (1 is a bit unpleasant) that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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.
