Yahoo Finance Investors push Intellia Therapeutics (NASDAQ:NTLA) 3.5% lower this week, company's increasing losses might be to blame
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Intellia Therapeutics, Inc. (NASDAQ:NTLA) share price is 176% higher than it was three years ago. That sort of return is as solid as granite. In the last week shares have slid back 3.5%.
Although Intellia Therapeutics has shed US$115m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
See our latest analysis for Intellia Therapeutics
Intellia Therapeutics 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. 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.
Intellia Therapeutics actually saw its revenue drop by 4.1% per year over three years. So we wouldn't have expected the share price to gain 40% per year, but it has. It's a good reminder that expectations about the future, not the past history, always impact share prices.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Intellia Therapeutics is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for Intellia Therapeutics in this interactive graph of future profit estimates.
A Different Perspective
We regret to report that Intellia Therapeutics shareholders are down 43% for the year. Unfortunately, that's worse than the broader market decline of 9.2%. 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. Longer term investors wouldn't be so upset, since they would have made 10%, 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. 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 2 warning signs for Intellia Therapeutics 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 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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