If You Had Bought NantHealth (NASDAQ:NH) Shares A Year Ago You'd Have Earned 183% Returns

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the NantHealth, Inc. (NASDAQ:NH) share price has soared 183% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 112% gain in the last three months. It is also impressive that the stock is up 46% over three years, adding to the sense that it is a real winner.

Check out our latest analysis for NantHealth

Because NantHealth made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

NantHealth grew its revenue by 12% last year. That's not a very high growth rate considering it doesn't make profits. In contrast, the share price took off during the year, gaining 183%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

We're pleased to report that NantHealth rewarded shareholders with a total shareholder return of 183% over the last year. That's better than the annualized TSR of 14% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Even so, be aware that NantHealth is showing 3 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

But note: NantHealth may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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