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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Inspire Medical Systems, Inc. (NYSE:INSP) share price is 45% higher than it was a year ago, much better than the market return of around 2.3% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow Inspire Medical Systems for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Inspire Medical Systems 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.
In the last year Inspire Medical Systems saw its revenue grow by 71%. That's well above most other pre-profit companies. The solid 45% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate Inspire Medical Systems in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Balance sheet strength is crucual. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Inspire Medical Systems boasts a total shareholder return of 45% for the last year. We regret to report that the share price is down 0.3% over ninety days. Shorter term share price moves often don't signify much about the business itself. Before spending more time on Inspire Medical Systems it might be wise to click here to see if insiders have been buying or selling shares.
We will like Inspire Medical Systems 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.
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.