Yahoo Finance Introducing archTIS (ASX:AR9), A Stock That Climbed 79% In The Last Year
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 archTIS Limited (ASX:AR9) share price is up 79% in the last year, clearly besting the market return of around 25% (not including dividends). That's a solid performance by our standards! We'll need to follow archTIS 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 archTIS
archTIS 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.
archTIS grew its revenue by 290% last year. That's stonking growth even when compared to other loss-making stocks. The solid 79% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at archTIS. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at archTIS' financial health with this free report on its balance sheet.
A Different Perspective
archTIS boasts a total shareholder return of 79% for the last year. That's better than the more recent three month gain of 15%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). 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. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for archTIS you should know about.
Of course archTIS may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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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