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If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Checkpoint Therapeutics, Inc. (NASDAQ:CKPT) share price is 44% higher than it was a year ago, much better than the market return of around 8.5% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow Checkpoint Therapeutics for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Checkpoint Therapeutics 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. 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.
In the last year Checkpoint Therapeutics saw its revenue grow by 103%. That's well above most other pre-profit companies. While the share price gain of 44% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate Checkpoint Therapeutics in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Checkpoint Therapeutics shareholders should be happy with the total gain of 44% over the last twelve months. And the share price momentum remains respectable, with a gain of 24% in the last three months. This suggests the company is continuing to win over new investors. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.