We think that it’s fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. But when you hold the right stock for the right time period, the rewards can be truly huge. Take, for example, the Exact Sciences Corporation (NASDAQ:EXAS) share price, which skyrocketed 1647% over three years. But it’s down 6.7% in the last week. But this could be related to the soft market, with stocks selling off around 0.7% in the last week.
We love happy stories like this one. The company should be really proud of that performance!
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Given that Exact Sciences 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.
Exact Sciences’s revenue trended up 67% each year over three years. That’s much better than most loss-making companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 159% per year, over the same period. Despite the strong run, top performers like Exact Sciences have been known to go on winning for decades. So we’d recommend you take a closer look at this one, or even put it on your watchlist.
Depicted in the graphic below, you’ll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
Exact Sciences is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think Exact Sciences will earn in the future (free analyst consensus estimates)
A Different Perspective
It’s nice to see that Exact Sciences shareholders have received a total shareholder return of 87% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 48% per year), it would seem that the stock’s performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
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.
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.