While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. While not every stock performs well, when investors win, they can win big. For example, the Invitae Corporation (NYSE:NVTA) share price rocketed moonwards 327% in just one year. On top of that, the share price is up 64% in about a quarter. It is also impressive that the stock is up 128% over three years, adding to the sense that it is a real winner.
Invitae isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn’t make profits, we’d generally expect to see good revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over the last twelve months, Invitae’s revenue grew by 117%. That’s stonking growth even when compared to other loss-making stocks. But the share price has really rocketed in response gaining 327% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
It’s nice to see that Invitae shareholders have gained 327% (in total) over the last year. That’s better than the annualized TSR of 32% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Invitae on your watchlist. Before spending more time on Invitae it might be wise to click here to see if insiders have been buying or selling shares.
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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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.