Allscripts Healthcare Solutions (NASDAQ:MDRX) Shareholders Have Enjoyed An Impressive 136% Share Price Gain
Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) share price had more than doubled in just one year - up 136%. Having said that, the longer term returns aren't so impressive, with stock gaining just 28% in three years.
See our latest analysis for Allscripts Healthcare Solutions
Because Allscripts Healthcare Solutions 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. When a company doesn't make profits, we'd generally expect to see good 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 year Allscripts Healthcare Solutions saw its revenue shrink by 8.0%. So we would not have expected the share price to rise 136%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Allscripts Healthcare Solutions is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Allscripts Healthcare Solutions stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
It's good to see that Allscripts Healthcare Solutions has rewarded shareholders with a total shareholder return of 136% in the last twelve months. That gain is better than the annual TSR over five years, which is 2%. 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 could get a better understanding of Allscripts Healthcare Solutions' growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Of course Allscripts Healthcare Solutions 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.
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