Even after rising 25% last week, Oyster Point Pharma (NASDAQ:OYST) shareholders are still down 76% over the past year

It’s nice to see the Oyster Point Pharma, Inc. (NASDAQ:OYST) stock price is up 25% in one week. But that doesn’t change the fact that returns over the past year have been stomach-churning. Indeed, the stock price has fallen 76% over the past year. So it’s not that surprising to see a bit of a rebound. The real question is whether the company can raise the bar.

The recent 25% rise could be a positive sign of things to come, so let’s take a lot of look at historical fundamentals.

Check out our latest analysis for Oyster Point Pharma

Oyster Point Pharma is currently unprofitable, so most analysts would look to revenue growth to get a sense of how fast the underlying business is growing. Generally speaking, companies without profits should increase their revenue every year, and at a good pace. Some companies are ready to postpone profitability to increase revenue faster, but in this case, good revenue growth is expected.

The image below shows how earnings and income have tracked over time (if you click on the image you can see more details).

NasdaqGS: OYST Earnings and Revenue Growth June 26, 2022

Take a closer look at Oyster Point Pharma’s financial health with this free report on its balance sheet.

A different perspective

We doubt Oyster Point Pharma shareholders will be happy with the 76% year-over-year loss. This is below the market, which lost 17%. It’s no doubt a disappointment, but the stock may well have done better in a stronger market. With the stock down 61% in the past three months, the market doesn’t seem to believe the company has solved all of its problems. Basically, most investors should be wary of buying poorly performing stocks unless the company itself has clearly improved. While it’s worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. Take risks, for example – Oyster Point Pharma has 4 warning signs (and 1 that shouldn’t be ignored) that we think you should know about.

But note: Oyster Point Pharma may not be the best stock to buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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