Stock Analysis

Update: Tabula Rasa HealthCare (NASDAQ:TRHC) Stock Gained 51% In The Last Three Years

NasdaqGM:TRHC
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Buying a low-cost index fund will get you the average market return. But across the board there are plenty of stocks that underperform the market. For example, the Tabula Rasa HealthCare, Inc. (NASDAQ:TRHC) share price return of 51% over three years lags the market return in the same period. Unfortunately, the share price has fallen 28% over twelve months.

Check out our latest analysis for Tabula Rasa HealthCare

Given that Tabula Rasa 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years Tabula Rasa HealthCare has grown its revenue at 30% annually. That's well above most pre-profit companies. The stock is up 15% over that time - a decent but not impressive return. Generally, we'd expect a stronger share price, given the impressive revenue growth. It could be that the stock was previously over-priced, or its losses might worry the market. But if you're looking for growth stocks, there might be an opportunity here.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGM:TRHC Earnings and Revenue Growth February 19th 2021

Take a more thorough look at Tabula Rasa HealthCare's financial health with this free report on its balance sheet.

A Different Perspective

The last twelve months weren't great for Tabula Rasa HealthCare shares, which cost holders 28%, while the market was up about 30%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Investors are up over three years, booking 15% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. It's always interesting to track share price performance over the longer term. But to understand Tabula Rasa HealthCare better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for Tabula Rasa 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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Valuation is complex, but we're here to simplify it.

Discover if Tabula Rasa HealthCare might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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