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The Clarivate (NYSE:CCC) Share Price Is Up 100% And Shareholders Are Boasting About It

Simply Wall St
·3 mins read

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Clarivate Plc (NYSE:CCC) share price had more than doubled in just one year - up 100%. It's also good to see the share price up 50% over the last quarter. Clarivate hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Clarivate

Clarivate wasn't profitable in the last twelve months, 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.

Over the last twelve months, Clarivate's revenue grew by 4.9%. That's not a very high growth rate considering it doesn't make profits. So we wouldn't have expected the share price to rise by 100%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just revenue growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Clarivate shareholders should be happy with the total gain of 100% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 50% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Clarivate better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Clarivate (including 1 which is makes us a bit uncomfortable) .

We will like Clarivate better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.