We think all investors should try to buy and hold high quality multi-year winners. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held argenx SE (EBR:ARGX) shares for the last five years, while they gained 1374%. And this is just one example of the epic gains achieved by some long term investors. Meanwhile the share price is 1.5% higher than it was a week ago.
We love happy stories like this one. The company should be really proud of that performance!
argenx 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years argenx saw its revenue grow at 44% per year. Even measured against other revenue-focussed companies, that's a good result. Arguably, this is well and truly reflected in the strong share price gain of 71%(per year) over the same period. It's never too late to start following a top notch stock like argenx, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
argenx is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling argenx stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
It's nice to see that argenx shareholders have received a total shareholder return of 34% over the last year. Having said that, the five-year TSR of 71% a year, is even better. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. 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. To that end, you should be aware of the 3 warning signs we've spotted with argenx .
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 BE exchanges.
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.
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