Is Twist Bioscience’s (NASDAQ: TWST) 106% Share Price Gain Well Deserved?

the Twist Bioscience Company The stock price (NASDAQ: TWST) had a bad week, falling 13%. Despite this, the stock has shown a solid performance over the past year, there’s no doubt about it. We are very happy to report that the share price has climbed 106% during this time. So the stock price may simply cool down after a sharp rise. The real question is whether the business is moving in the right direction.

Check out our latest review for Twist Bioscience

Since Twist Bioscience has not made a profit in the past twelve months, we will focus on revenue growth to get a quick view of its business development. Shareholders of unprofitable companies generally expect strong revenue growth. Some companies are ready to postpone profitability to increase their revenue faster, but in this case, good revenue growth is expected.

Last year, Twist Bioscience saw its turnover increase by 72%. It’s a head and shoulders above most loss making companies. And the stock price reacted, gaining 106% as we mentioned earlier. This type of revenue growth is bound to attract attention even if the business is not making a profit. Given the positive sentiment around the title, we are cautious, but there is no doubt that it is worth watching.

You can see how income and income have changed over time in the image below (click on the graph to see the exact values).

NasdaqGS: TWST Profit and Revenue Growth July 19, 2021

You can see how his track record has strengthened (or weakened) over time in this free interactive graphic.

A different perspective

It’s nice to see that Twist Bioscience shareholders have gained 106% over the past year. Unfortunately, the share price is down 12% in the last quarter. Shorter-term stock price movements often don’t mean much to the company itself. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we discovered 4 warning signs for Twist Bioscience (1 is a little worrying!) That you should know before investing here.

If you are like me then you do not want to miss it free list of growing companies that insiders buy.

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

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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