The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the NanoXplore, Inc. (CVE:GRA) share price is up 12% in the last year, clearly besting the market return of around 7.2% (not including dividends). So that should have shareholders smiling. NanoXplore hasn't been listed for long, so it's still not clear if it is a long term winner.
NanoXplore isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year NanoXplore saw its revenue grow by 703%. That's stonking growth even when compared to other loss-making stocks. The solid 12% 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 NanoXplore in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling NanoXplore stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
NanoXplore boasts a total shareholder return of 12% for the last year. We regret to report that the share price is down 3.4% over ninety days. Shorter term share price moves often don't signify much about the business itself. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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 email@example.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. Thank you for reading.