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Vaccitech (NASDAQ:VACC) adds US$10m to market cap in the past 7 days, though investors from a year ago are still down 73%

Vaccitech plc (NASDAQ:VACC) shareholders should be happy to see the share price up 16% in the last month. But that is meagre solace when you consider how the price has plummeted over the last year. To wit, the stock has dropped 73% over the last year. So it's not that amazing to see a bit of a bounce. The important thing is whether the company can turn it around, longer term.

On a more encouraging note the company has added US$10m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

View our latest analysis for Vaccitech

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

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During the last year Vaccitech grew its earnings per share, moving from a loss to a profit.

We're surprised that the share price is lower given that improvement. If the company can sustain the earnings growth, this might be an inflection point for the business, which would make right now a really interesting time to study it more closely.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
earnings-per-share-growth

We know that Vaccitech has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Vaccitech stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Vaccitech shareholders are down 73% for the year, even worse than the market loss of 16%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 0.4% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Vaccitech better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Vaccitech (including 2 which make us uncomfortable) .

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 US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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