Increasing losses over year doesn't faze Science 37 Holdings (NASDAQ:SNCE) investors as stock rallies 122% this past week

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This month, we saw the Science 37 Holdings, Inc. (NASDAQ:SNCE) up an impressive 148%. But that's small comfort given the dismal price performance over the last year. During that time the share price has sank like a stone, descending 68%. The share price recovery is not so impressive when you consider the fall. You could argue that the sell-off was too severe.

The recent uptick of 122% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Science 37 Holdings

Science 37 Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Science 37 Holdings' revenue didn't grow at all in the last year. In fact, it fell 15%. That's not what investors generally want to see. The share price drop of 68% is understandable given the company doesn't have profits to boast of. Fingers crossed this is the low ebb for the stock. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at Science 37 Holdings' financial health with this free report on its balance sheet.

A Different Perspective

Given that the market gained 5.9% in the last year, Science 37 Holdings shareholders might be miffed that they lost 68%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Putting aside the last twelve months, it's good to see the share price has rebounded by 146%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Science 37 Holdings better, we need to consider many other factors. Take risks, for example - Science 37 Holdings has 4 warning signs (and 1 which is a bit concerning) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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.

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