Shareholders trust Protagonist Therapeutics (NASDAQ: PTGX) at a loss as the stock climbed 7.3% last week, taking the three-year gain to 83%

It could certainly concern Protagonist Therapeutics, Inc. (NASDAQ: PTGX) to see the stock price drop 61% in just 30 days. But that doesn’t change the fact that the returns over the past three years have been good. In fact, the company’s stock price outperformed its stock index performance during that time, posting a gain of 83%.

As it has been a strong week for Protagonist Therapeutics shareholders, let’s take a look at the longer-term fundamentals trend.

See our latest review for Protagonist Therapeutics

Given that Protagonist Therapeutics has recorded a loss over the past twelve months, we believe the market is likely more focused on revenue and revenue growth, at least for now. When a business is not making a profit, we generally expect good revenue growth. This is because it is difficult to be sure that a business will be sustainable if the revenue growth is negligible and it never makes a profit.

Protagonist Therapeutics has indeed seen its turnover decline by 11% per year over three years. Despite the lack of revenue growth, the stock returned 22%, compound, over three years. If the company cuts costs, profitability could be on the horizon, but declining revenue is a At first glance worry.

The graph below illustrates the evolution of earnings and income over time (reveal the exact values ​​by clicking on the image).

The strength of the balance sheet is crucial. It might be worth taking a look at our free report on changes in their financial situation over time.

A different perspective

While the broader market gained around 37% last year, Protagonist Therapeutics shareholders lost 5.8%. Even good stock prices sometimes drop, but we want to see improvements in the fundamentals of a company, before we get too interested. Unfortunately, last year’s performance may indicate unresolved challenges, given it was worse than the 2% annualized loss over the past five years. We are aware that Baron Rothschild has said that investors should “buy when there is blood in the streets”, but we caution that investors must first ensure that they are buying a high quality business. It is always interesting to follow the evolution of stock prices over the long term. But to better understand Protagonist Therapeutics, there are many other factors that we need to consider. For example, we discovered 4 warning signs for Protagonist Therapeutics (1 shouldn’t be ignored!) Which you should be aware of before investing here.

If you are like me then you not want to miss it free list of growing companies that insiders buy.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on US stock exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.

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