Yahoo Finance Can You Imagine How Jubilant MaxLinear's (NYSE:MXL) Shareholders Feel About Its 132% Share Price Gain?
When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the MaxLinear, Inc. (NYSE:MXL) share price has soared 132% return in just a single year. In more good news, the share price has risen 2.1% in thirty days. But this could be related to good market conditions -- stocks in its market are up 5.6% in the last month. It is also impressive that the stock is up 52% over three years, adding to the sense that it is a real winner.
View our latest analysis for MaxLinear
Given that MaxLinear 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.
In the last year MaxLinear saw its revenue grow by 51%. That's stonking growth even when compared to other loss-making stocks. Meanwhile, the market has paid attention, sending the share price soaring 132% in response. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
MaxLinear is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think MaxLinear will earn in the future (free analyst consensus estimates)
A Different Perspective
It's good to see that MaxLinear has rewarded shareholders with a total shareholder return of 132% in the last twelve months. That gain is better than the annual TSR over five years, which is 14%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand MaxLinear better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with MaxLinear .
We will like MaxLinear better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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.
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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