Yahoo Finance A Look At Frequency Therapeutics' (NASDAQ:FREQ) Share Price Returns
Even the best stock pickers will make plenty of bad investments. And there's no doubt that Frequency Therapeutics, Inc. (NASDAQ:FREQ) stock has had a really bad year. In that relatively short period, the share price has plunged 52%. We wouldn't rush to judgement on Frequency Therapeutics because we don't have a long term history to look at. It's down 76% in about a quarter. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
Check out our latest analysis for Frequency Therapeutics
Given that Frequency Therapeutics didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.
In just one year Frequency Therapeutics saw its revenue fall by 5.1%. That's not what investors generally want to see. In the absence of profits, it's not unreasonable that the share price fell 52%. Fingers crossed this is the low ebb for the stock. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on Frequency Therapeutics' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Given that the market gained 41% in the last year, Frequency Therapeutics shareholders might be miffed that they lost 52%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Notably, the loss over the last year isn't as bad as the 76% drop in the last three months. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. 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 - Frequency Therapeutics has 4 warning signs (and 1 which is potentially serious) we think you should know about.
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 US exchanges.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
