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If You Had Bought EVO Payments (NASDAQ:EVOP) Shares A Year Ago You'd Have Made 46%

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. For example, the EVO Payments, Inc. (NASDAQ:EVOP) share price is up 46% in the last year, clearly besting than the market return of around 1.6% (not including dividends). So that should have shareholders smiling. We'll need to follow EVO Payments for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

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See our latest analysis for EVO Payments

EVO Payments 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.

Over the last twelve months, EVO Payments's revenue grew by 4.7%. That's not a very high growth rate considering it doesn't make profits. The modest growth is probably largely reflected in the share price, which is up 46%. That's not a standout result, but it is solid - much like the level of revenue growth. It could be worth keeping an eye on this one, especially if growth accelerates.

The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.

NasdaqGM:EVOP Income Statement, May 27th 2019
NasdaqGM:EVOP Income Statement, May 27th 2019

EVO Payments is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling EVO Payments stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

EVO Payments boasts a total shareholder return of 46% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 9.9% 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. 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 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.