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Does Boston Omaha’s (NASDAQ:BOMN) Share Price Gain of 17% Match Its Business Performance?

Simply Wall St

These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the Boston Omaha Corporation (NASDAQ:BOMN) share price is 17% higher than it was a year ago, much better than the market return of around -1.0% (not including dividends) in the same period. So that should have shareholders smiling. Boston Omaha hasn’t been listed for long, so it’s still not clear if it is a long term winner.

See our latest analysis for Boston Omaha

Because Boston Omaha is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Boston Omaha grew its revenue by 85% last year. That’s well above most other pre-profit companies. While the share price gain of 17% 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 Boston Omaha in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).

NasdaqCM:BOMN Income Statement, March 8th 2019

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Boston Omaha stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Boston Omaha shareholders should be happy with the total gain of 17% over the last twelve months. And the share price momentum remains respectable, with a gain of 4.5% in the last three months. This suggests the company is continuing to win over new investors. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Boston Omaha by clicking this link.

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 editorial-team@simplywallst.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.