Can You Imagine How Jubilant 1Life Healthcare's (NASDAQ:ONEM) Shareholders Feel About Its 129% Share Price Gain?

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example 1Life Healthcare, Inc. (NASDAQ:ONEM). Its share price is already up an impressive 129% in the last twelve months. Also pleasing for shareholders was the 78% gain in the last three months. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for 1Life Healthcare

Given that 1Life Healthcare 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

1Life Healthcare grew its revenue by 31% last year. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 129%. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

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

1Life Healthcare is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for 1Life Healthcare in this interactive graph of future profit estimates.

A Different Perspective

1Life Healthcare shareholders should be happy with the total gain of 129% over the last twelve months. And the share price momentum remains respectable, with a gain of 78% in the last three months. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand 1Life Healthcare better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for 1Life Healthcare you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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