If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. To wit, the Axonics Modulation Technologies, Inc. (NASDAQ:AXNX) share price is 78% higher than it was a year ago, much better than the market decline of around 3.0% (not including dividends) in the same period. That’s a solid performance by our standards! We’ll need to follow Axonics Modulation Technologies 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 Axonics Modulation Technologies
Given that Axonics Modulation 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Axonics Modulation Technologies grew its revenue by 1855% last year. That’s well above most other pre-profit companies. The solid 78% share price gain goes down pretty well, but it’s not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate Axonics Modulation Technologies in some detail. 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).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Axonics Modulation Technologies boasts a total shareholder return of 78% for the last year. That’s better than the more recent three month gain of 7.8%, 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). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we’ve spotted with Axonics Modulation Technologies (including 1 which is is significant) .
Axonics Modulation Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at [email protected] 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.
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