Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. To wit, the Zai Lab Limited (NASDAQ:ZLAB) share price is 93% higher than it was a year ago, much better than the market return of around 1.3% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow Zai Lab for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Because Zai Lab is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Zai Lab stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Zai Lab boasts a total shareholder return of 93% for the last year. The more recent returns haven't been as impressive as the longer term returns, coming in at just 12%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). You could get a better understanding of Zai Lab's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
We will like Zai Lab better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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 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. Thank you for reading.