Yahoo Finance Bionano Genomics (NASDAQ:BNGO) shareholders are still up 117% over 3 years despite pulling back 31% in the past week
Some Bionano Genomics, Inc. (NASDAQ:BNGO) shareholders are probably rather concerned to see the share price fall 59% over the last three months. But that doesn't change the fact that the returns over the last three years have been very strong. The share price marched upwards over that time, and is now 117% higher than it was. So the recent fall in the share price should be viewed in that context. The thing to consider is whether the underlying business is doing well enough to support the current price.
While the stock has fallen 31% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.
See our latest analysis for Bionano Genomics
Bionano Genomics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Bionano Genomics' revenue trended up 45% each year over three years. That's well above most pre-profit companies. Along the way, the share price gained 30% per year, a solid pop by our standards. 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 image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at Bionano Genomics' financial health with this free report on its balance sheet.
A Different Perspective
The last twelve months weren't great for Bionano Genomics shares, which performed worse than the market, costing holders 62%. Meanwhile, the broader market slid about 7.7%, likely weighing on the stock. Fortunately the longer term story is brighter, with total returns averaging about 30% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. 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. Take risks, for example - Bionano Genomics has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
But note: Bionano Genomics may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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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