Yahoo Finance Imagine Holding Exact Sciences (NASDAQ:EXAS) Shares While The Price Zoomed 978% Higher
We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can see their share prices grow by huge amounts. To wit, the Exact Sciences Corporation (NASDAQ:EXAS) share price has soared 978% over five years. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 13% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 6.3% in 90 days).
Anyone who held for that rewarding ride would probably be keen to talk about it.
See our latest analysis for Exact Sciences
Exact Sciences wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years Exact Sciences saw its revenue grow at 58% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 61% per year in that time. It's never too late to start following a top notch stock like Exact Sciences, since some long term winners go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Exact Sciences is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Exact Sciences stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
Exact Sciences provided a TSR of 18% over the year. That's fairly close to the broader market return. It has to be noted that the recent return falls short of the 61% shareholders have gained each year, over half a decade. Although the share price growth has slowed, the longer term story points to a business well worth watching. It's always interesting to track share price performance over the longer term. But to understand Exact Sciences better, we need to consider many other factors. Even so, be aware that Exact Sciences is showing 3 warning signs in our investment analysis , you should know about...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
