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Investing in stocks comes with the risk that the share price will fall. And unfortunately for ADC Therapeutics SA (NYSE:ADCT) shareholders, the stock is a lot lower today than it was a year ago. In that relatively short period, the share price has plunged 52%. ADC Therapeutics may have better days ahead, of course; we've only looked at a one year period. The falls have accelerated recently, with the share price down 26% in the last three months.
If the past week is anything to go by, investor sentiment for ADC Therapeutics isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for ADC Therapeutics
Because ADC Therapeutics 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
ADC Therapeutics shareholders are down 52% for the year, even worse than the market loss of 7.6%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 26% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand ADC Therapeutics better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for ADC Therapeutics you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.