Yahoo Finance Is Seattle Genetics's (NASDAQ:SGEN) 111% Share Price Increase Well Justified?
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. To wit, the Seattle Genetics, Inc. (NASDAQ:SGEN) share price has flown 111% in the last three years. How nice for those who held the stock! In more good news, the share price has risen 9.6% in thirty days.
Check out our latest analysis for Seattle Genetics
Because Seattle Genetics is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last three years Seattle Genetics has grown its revenue at 21% annually. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 28% compound over three years. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Seattle Genetics is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Seattle Genetics will earn in the future (free analyst consensus estimates)
A Different Perspective
We're pleased to report that Seattle Genetics shareholders have received a total shareholder return of 57% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 16% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. If you would like to research Seattle Genetics in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.