If You Had Bought argenx (EBR:ARGX) Stock Five Years Ago, You Could Pocket A 1527% Gain Today
For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. To wit, the argenx SE (EBR:ARGX) share price has soared 1527% over five years. If that doesn't get you thinking about long term investing, we don't know what will. In more good news, the share price has risen 0.9% in thirty days. We note that argenx reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.
It really delights us to see such great share price performance for investors.
See our latest analysis for argenx
argenx 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. 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.
In the last 5 years argenx saw its revenue grow at 44% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 75% per year in that time. Despite the strong run, top performers like argenx have been known to go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
argenx is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
We're pleased to report that argenx shareholders have received a total shareholder return of 33% over one year. Having said that, the five-year TSR of 75% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
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.
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.