Stock Analysis

Introducing Abiomed (NASDAQ:ABMD), The Stock That Zoomed 265% In The Last Five Years

  •  Updated
NasdaqGS:ABMD
Source: Shutterstock

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Abiomed, Inc. (NASDAQ:ABMD) share price has soared 265% in the last half decade. Most would be very happy with that. It's also good to see the share price up 20% over the last quarter. But this could be related to the strong market, which is up 12% in the last three months.

View our latest analysis for Abiomed

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During five years of share price growth, Abiomed achieved compound earnings per share (EPS) growth of 8.3% per year. This EPS growth is slower than the share price growth of 30% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 69.97.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
NasdaqGS:ABMD Earnings Per Share Growth January 6th 2021

Dive deeper into Abiomed's key metrics by checking this interactive graph of Abiomed's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Abiomed has rewarded shareholders with a total shareholder return of 79% in the last twelve months. That gain is better than the annual TSR over five years, which is 30%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Is Abiomed cheap compared to other companies? These 3 valuation measures might help you decide.

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 US exchanges.

If you’re looking to trade Abiomed, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


What are the risks and opportunities for Abiomed?

Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart.

View Full Analysis

Rewards

  • Revenue is forecast to grow 13.08% per year

  • Earnings grew by 78.9% over the past year

Risks

  • Earnings are forecast to decline by an average of 2.5% per year for the next 3 years

  • Large one-off items impacting financial results

  • Volatile share price over the past 3 months

View all Risks and Rewards

Share Price

Market Cap

1Y Return

View Company Report