Yahoo Finance Fulcrum Therapeutics (NASDAQ:FULC) delivers shareholders stellar 110% return over 1 year, surging 27% in the last week alone
When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Fulcrum Therapeutics, Inc. (NASDAQ:FULC) share price has soared 110% return in just a single year. Better yet, the share price has risen 27% in the last week. Zooming out, the stock is actually down 17% in the last three years.
The past week has proven to be lucrative for Fulcrum Therapeutics investors, so let's see if fundamentals drove the company's one-year performance.
Check out our latest analysis for Fulcrum Therapeutics
Because Fulcrum Therapeutics 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Fulcrum Therapeutics saw its revenue shrink by 38%. So we would not have expected the share price to rise 110%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for Fulcrum Therapeutics in this interactive graph of future profit estimates.
A Different Perspective
It's good to see that Fulcrum Therapeutics has rewarded shareholders with a total shareholder return of 110% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Fulcrum Therapeutics better, we need to consider many other factors. For example, we've discovered 2 warning signs for Fulcrum Therapeutics that you should be aware of before investing here.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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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