Those who invested in Crinetics Pharmaceuticals (NASDAQ:CRNX) five years ago are up 151%

The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) stock is up an impressive 151% over the last five years. And in the last month, the share price has gained 15%.

So let’s investigate and see if the longer term performance of the company has been in line with the underlying business’ progress.

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Given that Crinetics Pharmaceuticals 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. When a company doesn’t make profits, we’d generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last 5 years Crinetics Pharmaceuticals saw its revenue grow at 13% per year. That’s a pretty good long term growth rate. We’d argue this growth has been reflected in the share price which has climbed at a rate of 20% per year over in that time. Given that the business has made good progress on the top line, it would be worth taking a look at the growth trend. Accelerating growth can be a sign of an inflection point – and could indicate profits lie ahead. Worth watching 100%

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Crinetics Pharmaceuticals is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So we recommend checking out this free report showing consensus forecasts

Investors in Crinetics Pharmaceuticals had a tough year, with a total loss of 35%, against a market gain of about 21%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 20% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It’s always interesting to track share price performance over the longer term. But to understand Crinetics Pharmaceuticals better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we’ve spotted with Crinetics Pharmaceuticals .