Pieris Pharmaceuticals' (NASDAQ:PIRS) investors will be pleased with their favorable 34% return over the last five years

It hasn't been the best quarter for Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) shareholders, since the share price has fallen 15% in that time. But at least the stock is up over the last five years. However we are not very impressed because the share price is only up 34%, less than the market return of 111%.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Pieris Pharmaceuticals

Because Pieris Pharmaceuticals 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 5 years Pieris Pharmaceuticals saw its revenue grow at 17% per year. That's well above most pre-profit companies. While long-term shareholders have made money, the 6% per year gain over five years fall short of the market return. That's surprising given the strong revenue growth. It could be that the stock was previously over-priced - but if you're looking for underappreciated growth stocks, these numbers indicate that there might be an opportunity here.

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

If you are thinking of buying or selling Pieris Pharmaceuticals stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Pieris Pharmaceuticals shareholders have received a total shareholder return of 23% over the last year. That's better than the annualised return of 6% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Pieris Pharmaceuticals has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

We will like Pieris Pharmaceuticals better if we see some big insider buys. While we wait, check out this free list of growing companies 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 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.