Did The Underlying Business Drive CRISPR Therapeutics' (NASDAQ:CRSP) Lovely 407% Share Price Gain?

Simply Wall St
·3-min read

Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. But when you hold the right stock for the right time period, the rewards can be truly huge. Take, for example, the CRISPR Therapeutics AG (NASDAQ:CRSP) share price, which skyrocketed 407% over three years. In more good news, the share price has risen 5.0% in thirty days. We note that CRISPR Therapeutics reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.

See our latest analysis for CRISPR Therapeutics

Given that CRISPR Therapeutics only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

CRISPR Therapeutics' revenue trended up 105% each year over three years. That's much better than most loss-making companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 72% per year, over the same period. It's always tempting to take profits after a share price gain like that, but high-growth companies like CRISPR Therapeutics can sometimes sustain strong growth for many years. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
earnings-and-revenue-growth

CRISPR Therapeutics is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.

A Different Perspective

We're pleased to report that CRISPR Therapeutics rewarded shareholders with a total shareholder return of 88% over the last year. That gain actually surpasses the 72% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand CRISPR Therapeutics better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with CRISPR Therapeutics .

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.

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