Announcing: Vicor (NASDAQ:VICR) Stock Soared An Exciting 738% In The Last Five Years
Buying shares in the best businesses can build meaningful wealth for you and your family. And we've seen some truly amazing gains over the years. Don't believe it? Then look at the Vicor Corporation (NASDAQ:VICR) share price. It's 738% higher than it was five years ago. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 26% in about a quarter. But this could be related to the strong market, which is up 13% in the last three months.
We love happy stories like this one. The company should be really proud of that performance!
Check out our latest analysis for Vicor
We don't think that Vicor's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
In the last 5 years Vicor saw its revenue grow at 6.5% per year. That's a fairly respectable growth rate. However, the share price gain of 53% during the period is considerably stronger. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. If you are thinking of buying or selling Vicor stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
We're pleased to report that Vicor shareholders have received a total shareholder return of 145% over one year. That gain is better than the annual TSR over five years, which is 53%. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 2 warning signs for Vicor that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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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