Arcus Biosciences (NYSE:RCUS) Shareholders Have Enjoyed An Impressive 119% Share Price Gain
While Arcus Biosciences, Inc. (NYSE:RCUS) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 18% in the last quarter. On the other hand, over the last twelve months the stock has delivered rather impressive returns. During that period, the share price soared a full 119%. So we think most shareholders won't be too upset about the recent fall. The real question is whether the business is trending in the right direction.
View our latest analysis for Arcus Biosciences
Because Arcus Biosciences made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year Arcus Biosciences saw its revenue grow by 61%. That's stonking growth even when compared to other loss-making stocks. And the share price has responded, gaining 119% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling Arcus Biosciences stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
Arcus Biosciences shareholders should be happy with the total gain of 119% over the last twelve months. We regret to report that the share price is down 18% over ninety days. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand Arcus Biosciences better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Arcus Biosciences you should know about.
Arcus Biosciences 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.
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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