These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Impinj, Inc. (NASDAQ:PI) share price is up 49% in the last year, clearly besting than the market return of around 6.3% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Impinj for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Because Impinj is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Impinj saw its revenue shrink by 2.1%. Despite the lack of revenue growth, the stock has returned a solid 49% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Take a more thorough look at Impinj's financial health with this free report on its balance sheet.
A Different Perspective
Impinj shareholders should be happy with the total gain of 49% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 25% 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. Before spending more time on Impinj it might be wise to click here to see if insiders have been buying or selling shares.
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.
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 firstname.lastname@example.org. 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.