Introducing AV TECH (TPE:8072), A Stock That Climbed 49% In The Last Year

A diverse portfolio of stocks will always have winners and losers. But if you're going to beat the market overall, you need to have individual stocks that outperform. One such company is AV TECH Corporation (TPE:8072), which saw its share price increase 49% in the last year, slightly above the market return of around 42% (not including dividends). It is also impressive that the stock is up 43% over three years, adding to the sense that it is a real winner.

Check out our latest analysis for AV TECH

AV TECH isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year AV TECH saw its revenue grow by 34%. That's a fairly respectable growth rate. Buyers pushed the share price 49% in response, which isn't unreasonable. If revenue stays on trend, there may be plenty more share price gains to come. But it's crucial to check profitability and cash flow before forming a view on the future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on AV TECH's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

AV TECH's TSR for the year was broadly in line with the market average, at 50%. Most would be happy with a gain, and it helps that the year's return is actually better than the average return over five years, which was 2%. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - AV TECH has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

We will like AV TECH 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 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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