If You Had Bought TacBright Optronics (GTSM:6434) Stock Three Years Ago, You Could Pocket A 51% Gain Today

By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, TacBright Optronics Corp. (GTSM:6434) shareholders have seen the share price rise 51% over three years, well in excess of the market return (34%, not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 9.8% in the last year.

View our latest analysis for TacBright Optronics

While TacBright Optronics made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

TacBright Optronics' revenue trended up 29% each year over three years. That's much better than most loss-making companies. The share price rise of 15% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. So now might be the perfect time to put TacBright Optronics on your radar. If the company is trending towards profitability then it could be very interesting.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at TacBright Optronics' financial health with this free report on its balance sheet.

A Different Perspective

TacBright Optronics provided a TSR of 9.8% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 4% endured over half a decade. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand TacBright Optronics better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with TacBright Optronics .

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on TW exchanges.

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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.
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