Published on 8 Jun 2023 on Simply Wall St. via Yahoo Finance

Invitae Corporation (NYSE:NVTA) Stock's 27% Dive Might Signal An Opportunity But It Requires Some...

Invitae Corporation (NYSE:NVTA) shareholders that were waiting for something to happen have been dealt a blow with a 27% share price drop in the last month. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 60% loss during that time.

After such a large drop in price, Invitae's price-to-earnings (or "P/E") ratio of -0.1x might make it look like a strong buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 16x and even P/E's above 31x are quite common. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.

While the market has experienced earnings growth lately, Invitae's earnings have gone into reverse gear, which is not great. The P/E is probably low because investors think this poor earnings performance isn't going to get any better. If you still like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.