Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. But when you hold the right stock for the right time period, the rewards can be truly huge. One such superstar is Exact Sciences Corporation (NASDAQ:EXAS), which saw its share price soar 1173% in three years. Also pleasing for shareholders was the 23% gain in the last three months. But this could be related to the strong market, which is up 11% in the last three months.
It really delights us to see such great share price performance for investors.
Exact Sciences isn't a profitable company, so 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 3 years Exact Sciences saw its revenue grow at 71% per year. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 134% per year in that time. Despite the strong run, top performers like Exact Sciences have been known to go on winning for decades. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
Exact Sciences is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Exact Sciences will earn in the future (free analyst consensus estimates)
A Different Perspective
It's nice to see that Exact Sciences shareholders have received a total shareholder return of 108% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 49% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
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.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.