Yahoo Finance Inovio Pharmaceuticals (NASDAQ:INO) adds US$37m to market cap in the past 7 days, though investors from a year ago are still down 69%
Inovio Pharmaceuticals, Inc. (NASDAQ:INO) shareholders should be happy to see the share price up 11% in the last week. But that isn't much consolation to those who have suffered through the declines of the last year. Specifically, the stock price slipped by 69% in that time. So the bounce should be viewed in that context. It may be that the fall was an overreaction.
While the stock has risen 11% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
View our latest analysis for Inovio Pharmaceuticals
Inovio Pharmaceuticals wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.
Inovio Pharmaceuticals grew its revenue by 68% over the last year. That's a strong result which is better than most other loss making companies. In contrast the share price is down 69% over twelve months. Yes, the market can be a fickle mistress. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Inovio Pharmaceuticals stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While the broader market lost about 22% in the twelve months, Inovio Pharmaceuticals shareholders did even worse, losing 69%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 10% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Inovio Pharmaceuticals you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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