If You Had Bought Research Frontiers (NASDAQ:REFR) Stock A Year Ago, You Could Pocket A 65% Gain Today
The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the Research Frontiers Incorporated (NASDAQ:REFR) share price is up 65% in the last year, clearly besting the market return of around 24% (not including dividends). That's a solid performance by our standards! Also impressive, the stock is up 47% over three years, making long term shareholders happy, too.
Check out our latest analysis for Research Frontiers
Research Frontiers isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Research Frontiers grew its revenue by 11% last year. That's not great considering the company is losing money. In keeping with the revenue growth, the share price gained 65% in that time. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
This free interactive report on Research Frontiers's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We're pleased to report that Research Frontiers shareholders have received a total shareholder return of 65% over one year. There's no doubt those recent returns are much better than the TSR loss of 9.6% per year over five years. 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. If you would like to research Research Frontiers in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
We will like Research Frontiers better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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. Thank you for reading.
