Investors Who Bought Arcimoto (NASDAQ:FUV) Shares A Year Ago Are Now Up 319%

In this article:

Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When you find (and hold) a big winner, you can markedly improve your finances. For example, the Arcimoto, Inc. (NASDAQ:FUV) share price rocketed moonwards 319% in just one year. Better yet, the share price has risen 22% in the last week. Also impressive, the stock is up 102% over three years, making long term shareholders happy, too.

View our latest analysis for Arcimoto

Arcimoto 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.

Arcimoto grew its revenue by 8,996% last year. That's stonking growth even when compared to other loss-making stocks. But the share price has really rocketed in response gaining 319% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. If you are thinking of buying or selling Arcimoto stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We're pleased to report that Arcimoto rewarded shareholders with a total shareholder return of 319% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 26%. Given the track record of solid returns over varying time frames, it might be worth putting Arcimoto on your watchlist. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Arcimoto is showing 6 warning signs in our investment analysis , and 2 of those shouldn't be ignored...

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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@simplywallst.com.

Advertisement