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Chembio Diagnostics, Inc. (NASDAQ:CEMI) shareholders have seen the share price descend 12% over the month. On the other hand the returns over the last half decade have not been bad. The share price is up 69%, which is better than the market return of 61%.
Given that Chembio Diagnostics didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. When a company doesn’t make profits, we’d generally expect to see good revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
For the last half decade, Chembio Diagnostics can boast revenue growth at a rate of 0.7% per year. That’s not a very high growth rate considering the bottom line. The modest growth is probably broadly reflected in the share price, which is up 11%, per year over 5 years. The business could be one worth watching but we generally prefer faster revenue growth.
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on Chembio Diagnostics
A Different Perspective
Chembio Diagnostics shareholders are down 48% for the year, but the market itself is up 7.2%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn’t be so upset, since they would have made 11%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Chembio Diagnostics by clicking this link.
Chembio Diagnostics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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 email@example.com. 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.