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This week we saw the Progenics Pharmaceuticals, Inc. ( NASDAQ:PGNX ) share price climb by 14%. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 46% in the last year, well below the market return.
Because Progenics Pharmaceuticals is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Progenics Pharmaceuticals saw its revenue grow by 33%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 46%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. You can see what analysts are predicting for Progenics Pharmaceuticals in this interactive graph of future profit estimates .
A Different Perspective
Investors in Progenics Pharmaceuticals had a tough year, with a total loss of 46%, against a market gain of about 4.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 2.3%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Progenics Pharmaceuticals by clicking this link.
Progenics Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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 firstname.lastname@example.org . 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.