NeoGenomics, Inc. (NASDAQ:NEO) shareholders should be happy to see the share price up 18% in the last quarter. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 69%. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.

Since NeoGenomics has shed US$67m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

NeoGenomics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over three years, NeoGenomics grew revenue at 9.6% per year. That's a pretty good rate of top-line growth. So some shareholders would be frustrated with the compound loss of 19% per year. The market must have had really high expectations to be disappointed with this progress. It would be well worth taking a closer look at the company, to determine growth trends (and balance sheet strength).

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

NeoGenomics is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think NeoGenomics will earn in the future (free analyst consensus estimates)

A Different Perspective

NeoGenomics shareholders gained a total return of 12% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 5% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand NeoGenomics better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for NeoGenomics you should know about.

We will like NeoGenomics better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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.