Xponential Fitness (NYSE:XPOF) climbs 6.9% this week, taking one-year gains to 85%
The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. To wit, the Xponential Fitness, Inc. (NYSE:XPOF) share price is 85% higher than it was a year ago, much better than the market return of around 14% (not including dividends) in the same period. That's a solid performance by our standards! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
Since the stock has added US$58m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
View our latest analysis for Xponential Fitness
Because Xponential Fitness made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Xponential Fitness grew its revenue by 50% last year. That's a head and shoulders above most loss-making companies. While the share price gain of 85% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate Xponential Fitness in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Xponential Fitness is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.
A Different Perspective
Xponential Fitness boasts a total shareholder return of 85% for the last year. Unfortunately the share price is down 0.8% over the last quarter. Shorter term share price moves often don't signify much about the business itself. It's always interesting to track share price performance over the longer term. But to understand Xponential Fitness better, we need to consider many other factors. Take risks, for example - Xponential Fitness has 2 warning signs (and 1 which is significant) we think you should know about.
But note: Xponential Fitness 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 American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
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