The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. That downside risk was realized by Tango Therapeutics, Inc. (NASDAQ:TNGX) shareholders over the last year, as the share price declined 18%. That's disappointing when you consider the market declined 7.7%. Because Tango Therapeutics hasn't been listed for many years, the market is still learning about how the business performs. In the last ninety days we've seen the share price slide 20%.

If the past week is anything to go by, investor sentiment for Tango Therapeutics isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Tango Therapeutics

Tango Therapeutics 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In just one year Tango Therapeutics saw its revenue fall by 40%. That's not what investors generally want to see. Shareholders have seen the share price drop 18% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We doubt Tango Therapeutics shareholders are happy with the loss of 18% over twelve months. That falls short of the market, which lost 7.7%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's worth noting that the last three months did the real damage, with a 20% decline. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. It's always interesting to track share price performance over the longer term. But to understand Tango Therapeutics better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Tango Therapeutics (including 1 which is potentially serious) .

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.