ACADIA Pharmaceuticals (NASDAQ:ACAD) delivers shareholders favorable 9.3% CAGR over 5 years, surging 3.1% in the last week alone
When we invest, we're generally looking for stocks that outperform the market average. And in our experience, buying the right stocks can give your wealth a significant boost. To wit, the ACADIA Pharmaceuticals share price has climbed 56% in five years, easily topping the market return of 46% (ignoring dividends).
Since it's been a strong week for ACADIA Pharmaceuticals shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for ACADIA Pharmaceuticals
ACADIA Pharmaceuticals 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
For the last half decade, ACADIA Pharmaceuticals can boast revenue growth at a rate of 21% per year. That's well above most pre-profit companies. It's good to see that the stock has 9%, but not entirely surprising given revenue shows strong growth. If you think there could be more growth to come, now might be the time to take a close look at ACADIA Pharmaceuticals. Of course, you'll have to research the business more fully to figure out if this is an attractive opportunity.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
ACADIA Pharmaceuticals is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for ACADIA Pharmaceuticals in this interactive graph of future profit estimates.
A Different Perspective
We're pleased to report that ACADIA Pharmaceuticals shareholders have received a total shareholder return of 47% over one year. That gain is better than the annual TSR over five years, which is 9%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
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 American 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
