Yahoo Finance Investors in SQZ Biotechnologies (NYSE:SQZ) have unfortunately lost 79% over the last year
It's not a secret that every investor will make bad investments, from time to time. But it should be a priority to avoid stomach churning catastrophes, wherever possible. We wouldn't blame SQZ Biotechnologies Company (NYSE:SQZ) shareholders if they were still in shock after the stock dropped like a lead balloon, down 79% in just one year. That'd be a striking reminder about the importance of diversification. SQZ Biotechnologies may have better days ahead, of course; we've only looked at a one year period. Shareholders have had an even rougher run lately, with the share price down 33% in the last 90 days. But this could be related to the weak market, which is down 18% in the same period.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
See our latest analysis for SQZ Biotechnologies
Because SQZ Biotechnologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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 twelve months, SQZ Biotechnologies increased its revenue by 22%. That's definitely a respectable growth rate. However, it seems like the market wanted more, since the share price is down 79%. One fear might be that the company might be losing too much money and will need to raise more. We'd posit that the future looks challenging, given the disconnect between revenue growth and the share price.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at SQZ Biotechnologies' financial health with this free report on its balance sheet.
A Different Perspective
SQZ Biotechnologies shareholders are down 79% for the year, even worse than the market loss of 21%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 33%, 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for SQZ Biotechnologies 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.
