Yahoo Finance Shareholders in Protagonist Therapeutics (NASDAQ:PTGX) are in the red if they invested a year ago
Investing in stocks comes with the risk that the share price will fall. Unfortunately, shareholders of Protagonist Therapeutics, Inc. (NASDAQ:PTGX) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 67%. Longer term investors have fared much better, since the share price is up 9.5% in three years. The share price has dropped 67% in three months.
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.
Check out our latest analysis for Protagonist Therapeutics
Protagonist Therapeutics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Protagonist Therapeutics' revenue didn't grow at all in the last year. In fact, it fell 4.4%. That looks pretty grim, at a glance. In the absence of profits, it's not unreasonable that the share price fell 67%. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
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 Protagonist Therapeutics' financial health with this free report on its balance sheet.
A Different Perspective
We regret to report that Protagonist Therapeutics shareholders are down 67% for the year. Unfortunately, that's worse than the broader market decline of 5.6%. 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. Longer term investors wouldn't be so upset, since they would have made 0.9%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Protagonist Therapeutics better, we need to consider many other factors. Take risks, for example - Protagonist Therapeutics has 3 warning signs we think you should be aware of.
We will like Protagonist Therapeutics better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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.
