Investors Who Bought Vapotherm (NYSE:VAPO) Shares A Year Ago Are Now Up 132%

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. For example, the Vapotherm, Inc. (NYSE:VAPO) share price has soared 132% return in just a single year. Meanwhile the share price is 2.3% higher than it was a week ago. We'll need to follow Vapotherm for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Vapotherm

Given that Vapotherm 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Vapotherm grew its revenue by 109% last year. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 132% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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 Vapotherm

A Different Perspective

Vapotherm shareholders should be happy with the total gain of 132% over the last twelve months. That's better than the more recent three month gain of 1.7%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). It's always interesting to track share price performance over the longer term. But to understand Vapotherm better, we need to consider many other factors. For instance, we've identified 3 warning signs for Vapotherm that you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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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