We believe the opportunity to find fantastic perennial winners motivates many investors. You won’t get it right every time, but when you do the returns can be really great. One such superstar is Tandem Diabetes Care, Inc. (NASDAQ: TNDM), whose share price is up 486% in three years. The share price is now 2.1% higher than a week ago.
Check out our latest analysis for Tandem Diabetes Care
Tandem Diabetes Care is not currently profitable, so most analysts would expect revenue growth to get an idea of how fast the underlying business is growing. Shareholders in unprofitable companies typically expect strong sales growth. Some companies are willing to shift profitability in order to grow sales faster. In this case, however, one expects good sales growth.
For the past 3 years, Tandem Diabetes Care sales have increased 47% annually. That’s a lot better than most loss-making companies. And it’s not just the revenue that takes off. The share price has risen by 80% per year during this time. Despite the strong run, top performers like Tandem Diabetes Care are known to have been winning for decades. In fact, it might be time to put it on your watchlist if you aren’t already familiar with the stock.
The graph below shows how revenue and earnings have changed over time (indicate the exact values by clicking on the image).
NasdaqGM: TNDM Earnings and Revenue Growth May 26, 2021
It’s probably worth noting that at companies of similar size, the CEO is paid less than the median. While CEO compensation is always worth reviewing, the really important question is whether the company can grow its profits going forward. So it makes a lot of sense to check what analysts at Tandem Diabetes Care expect in the future (free earnings forecasts).
Another perspective
Tandem Diabetes Care achieved a TSR of 1.4% over the past twelve months. But that wasn’t the market average. If we look back on five years, the returns are even better, being 4% a year for five years. It is entirely possible that business will continue to do dexterously even as price gains slow. I find it very interesting to look at the share price as a proxy for business development over the long term. But to really gain insight, we need to consider other information as well. Take risks, for example – Tandem Diabetes Care has 2 warning signs We think you should be aware of this.
But note: Tandem Diabetes Care may not be the best stock to buy. So take a look at it free List of interesting companies with a history of earnings growth (and further growth forecast).
Please note that the market returns reported in this article reflect the market weighted average returns on stocks currently traded on US exchanges.
Funded
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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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