Quanterix (NASDAQ:QTRX) investors are sitting on a 72% loss if they had invested a year ago
The art and science of stock market investing requires tolerance for losing money on some of the stocks you buy. But it should be a priority to avoid stomach-churning disasters whenever possible. We therefore hope that those who held Quanterix Corporation (NASDAQ:QTRX) over the past year do not lose the lesson, in addition to the 72% decline in the value of their shares. That would be enough to make even the strongest stomachs turn. To make matters worse, the three-year returns were also very disappointing (the share price is 48% lower than three years ago). The falls have accelerated recently, with the stock price dropping 43% in the past three months.
So let’s take a look and see if the company’s long-term performance has been in line with the progress of the underlying business.
Check out our latest analysis for Quanterix
Since Quanterix has not made a profit in the last twelve months, we will focus on revenue growth to get a quick overview of its business development. When a business is not making a profit, you generally expect to see good revenue growth. Indeed, it is difficult to be sure that a business will be sustainable if revenue growth is negligible and it never makes a profit.
Over the last twelve months, Quanterix has increased its turnover by 15%. That’s certainly a respectable growth rate. However, it seems the market wanted more, as the stock price is down 72%. The losses may be too great for investors to handle without losing their temper. It seems that the market is worried about the future, as this development in the share price does not seem to reflect revenue growth at all.
You can see how earnings and income have changed over time below (find out the exact values by clicking on the image).
If you are considering buying or selling Quanterix stock, you should check out this FREE detailed report on its balance sheet.
A different perspective
Quanterix’s shareholding is down 72% for the year, below market yield. The market lost about 20%, probably weighing on the stock price. Shareholders have lost 14% per year over the past three years, so the share price decline has become steeper over the past year; a potential symptom of unresolved challenges. Although Baron Rothschild said “buy when there is blood in the streets, even if the blood is yours”, he also focuses on high quality stocks with strong prospects. While it’s worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. Example: we have identified 3 warning signs for Quanterix you should be aware.
We’ll like Quanterix better if we see big insider buying. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.