The Guardion Health Sciences (NASDAQ:GHSI) Share Price Has Gained 90% And Shareholders Are Hoping For More

It's been a soft week for Guardion Health Sciences, Inc. (NASDAQ:GHSI) shares, which are down 11%. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. To wit, it had solidly beat the market, up 90%.

See our latest analysis for Guardion Health Sciences

Guardion Health Sciences isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

Guardion Health Sciences grew its revenue by 115% last year. That's a head and shoulders above most loss-making companies. While the share price gain of 90% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Guardion Health Sciences. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Guardion Health Sciences shareholders have gained 90% over the last year. And the share price momentum remains respectable, with a gain of 210% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Guardion Health Sciences better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Guardion Health Sciences (of which 1 is potentially serious!) you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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