Introducing Anaplan (NYSE:PLAN), A Stock That Climbed 26% In The Last Year
It hasn't been the best quarter for Anaplan, Inc. (NYSE:PLAN) shareholders, since the share price has fallen 12% in that time. Taking a longer term view we see the stock is up over one year. But to be blunt its return of 26% fall short of what you could have got from an index fund (around 45%).
View our latest analysis for Anaplan
Anaplan isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Anaplan's revenue grew by 29%. That's a fairly respectable growth rate. The share price gain of 26% seems pretty muted, considering the growth. Its possible that shareholders had expected higher growth. However, if you can reasonably expect profits in the next few years, this stock might belong on your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Anaplan is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
We're happy to report that Anaplan are up 26% over the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 45%. The last three months haven't been great for shareholder returns, since the share price has trailed the market by 18% in the last three months. But a weak quarter certainly doesn't diminish the longer-term achievements of the business. It's always interesting to track share price performance over the longer term. But to understand Anaplan better, we need to consider many other factors. For instance, we've identified 3 warning signs for Anaplan that you should be aware of.
But note: Anaplan may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
