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The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Sol-Gel Technologies Ltd. (NASDAQ:SLGL) share price is up 11% in the last year, clearly besting than the market return of around 2.8% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Sol-Gel Technologies hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for Sol-Gel Technologies
Given that Sol-Gel Technologies 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Sol-Gel Technologies saw its revenue grow by 2856%. That's well above most other pre-profit companies. While the share price gain of 11% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate Sol-Gel Technologies in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
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.
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free report showing analyst forecasts should help you form a view on Sol-Gel Technologies
A Different Perspective
Sol-Gel Technologies boasts a total shareholder return of 11% for the last year. And the share price momentum remains respectable, with a gain of 30% in the last three months. This suggests the company is continuing to win over new investors. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
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.
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 editorial-team@simplywallst.com. 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.