If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the International Money Express, Inc. (NASDAQ:IMXI) share price is 41% higher than it was a year ago, much better than the market return of around 3.9% (not including dividends) in the same period. So that should have shareholders smiling. We'll need to follow International Money Express for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
International Money Express isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
International Money Express grew its revenue by 27% last year. That's a fairly respectable growth rate. Buyers pushed the share price 41% in response, which isn't unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
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
International Money Express boasts a total shareholder return of 41% for the last year. And the share price momentum remains respectable, with a gain of 17% in the last three months. 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. If you would like to research International Money Express in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course International Money Express may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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.