Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. Not every pick can be a winner, but when you pick the right stock, you can win big. Take, for example, the OptimizeRx Corporation (NASDAQ:OPRX) share price, which skyrocketed 399% over three years. And in the last month, the share price has gained 7.5%.
Given that OptimizeRx only made minimal earnings in the last twelve months, we’ll focus on revenue to gauge its business development. As a general rule, if the market is looking past earnings to focus on revenue, there is a hope for, or expectation of, strong growth. The main reason for this is that fast revenue growth can be readily extrapolated into a profitable future, but stagnant revenue cannot.
OptimizeRx’s revenue trended up 34% each year over three years. That’s much better than most loss-making companies. And it’s not just the revenue that is taking off. The share price is up 71% per year in that time. Despite the strong run, top performers like OptimizeRx have been known to go on winning for decades. In fact, it might be time to put it on your watchlist, if you’re not already familiar with the stock.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on OptimizeRx
A Different Perspective
We’re pleased to report that OptimizeRx shareholders have received a total shareholder return of 223% over one year. That’s better than the annualised return of 26% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares – and the price they paid.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).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 firstname.lastname@example.org. 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.