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If You Had Bought eMagin (NYSEMKT:EMAN) Stock A Year Ago, You Could Pocket A 250% Gain Today

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Simply Wall St
·3 min read
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eMagin Corporation (NYSEMKT:EMAN) shareholders might be concerned after seeing the share price drop 22% in the last month. But that doesn't detract from the splendid returns of the last year. We're very pleased to report the share price shot up 250% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

Check out our latest analysis for eMagin

Given that eMagin didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Over the last twelve months, eMagin's revenue grew by 25%. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 250%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

We're pleased to report that eMagin shareholders have received a total shareholder return of 250% over one year. That certainly beats the loss of about 7.7% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 5 warning signs for eMagin (1 shouldn't be ignored!) that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.