These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the MAG Interactive AB (publ) (STO:MAGI) share price is 23% higher than it was a year ago, much better than the market return of around 16% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! MAG Interactive hasn't been listed for long, so it's still not clear if it is a long term winner.
MAG Interactive 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 MAG Interactive saw its revenue shrink by 17%. Despite the lack of revenue growth, the stock has returned a solid 23% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling MAG Interactive stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that MAG Interactive shareholders have gained 23% over the last year. And the share price momentum remains respectable, with a gain of 9.8% in the last three months. This suggests the company is continuing to win over new investors. If you would like to research MAG Interactive in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course MAG Interactive may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE exchanges.
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.
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.