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A Spotlight On Geron Corporation's (NASDAQ:GERN) Fundamentals

Geron Corporation (NASDAQ:GERN) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of GERN, it is a company with strong financial health as well as an optimistic growth outlook. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Geron here.

Flawless balance sheet with high growth potential

Investors in search for stocks with room to flourish should look no further than GERN, with its expected earnings growth of 36%. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. GERN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. GERN currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. GERN has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

NasdaqGS:GERN Past and Future Earnings, August 8th 2019
NasdaqGS:GERN Past and Future Earnings, August 8th 2019

Next Steps:

For Geron, I've put together three important factors you should further examine:

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  1. Historical Performance: What has GERN's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is GERN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GERN is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GERN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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.