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Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held Veracyte, Inc. (NASDAQ:VCYT) shares for the last five years, while they gained 502%. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 15% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.
Anyone who held for that rewarding ride would probably be keen to talk about it.
Veracyte wasn't profitable in the last twelve months, 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years Veracyte saw its revenue grow at 19% per year. Even measured against other revenue-focussed companies, that's a good result. Fortunately, the market has not missed this, and has pushed the share price up by 43% per year in that time. It's never too late to start following a top notch stock like Veracyte, since some long term winners 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 company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Veracyte stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Veracyte shareholders have received a total shareholder return of 61% over the last year. That's better than the annualised return of 43% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Veracyte better, we need to consider many other factors. For example, we've discovered 3 warning signs for Veracyte that you should be aware of before investing here.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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.
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