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AgEagle Aerial Systems' (NYSEMKT:UAVS) Wonderful 478% Share Price Increase Shows How Capitalism Can Build Wealth

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Simply Wall St
·3 min read
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While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, AgEagle Aerial Systems, Inc. (NYSEMKT:UAVS) has generated a beautiful 478% return in just a single year. Better yet, the share price has risen 28% in the last week. This could be related to the recent financial results, released less than a week ago -- you can catch up on the most recent data by reading our company report. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for AgEagle Aerial Systems

AgEagle Aerial Systems isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, AgEagle Aerial Systems' revenue grew by 820%. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 478% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.

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

earnings-and-revenue-growth
earnings-and-revenue-growth

This free interactive report on AgEagle Aerial Systems' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

AgEagle Aerial Systems boasts a total shareholder return of 478% for the last year. We regret to report that the share price is down 6.6% over ninety days. Shorter term share price moves often don't signify much about the business itself. 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. For example, we've discovered 4 warning signs for AgEagle Aerial Systems (2 are a bit concerning!) that you should be aware of before investing here.

Of course AgEagle Aerial Systems may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. 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.

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