Innovative Solutions and Support (NASDAQ:ISSC) Shareholders Have Enjoyed An Impressive 114% Share Price Gain
Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Innovative Solutions and Support, Inc. (NASDAQ:ISSC). Its share price is already up an impressive 114% in the last twelve months. The last week saw the share price soften some 1.6%. The longer term returns have not been as good, with the stock price only 29% higher than it was three years ago.
See our latest analysis for Innovative Solutions and Support
We don't think that Innovative Solutions and Support's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
In the last year Innovative Solutions and Support saw its revenue grow by 14%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 114%. We're happy that investors have made money, though we wonder if the increase will be sustained. It's quite likely that the market is considering other factors, not just revenue growth.
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 Innovative Solutions and Support stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Innovative Solutions and Support shareholders have received a total shareholder return of 114% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 9.7% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on Innovative Solutions and Support it might be wise to click here to see if insiders have been buying or selling shares.
We will like Innovative Solutions and Support 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.
