Yahoo Finance Investors Who Bought Coupa Software (NASDAQ:COUP) Shares Three Years Ago Are Now Up 519%
For us, stock picking is in large part the hunt for the truly magnificent stocks. But when you hold the right stock for the right time period, the rewards can be truly huge. One such superstar is Coupa Software Incorporated (NASDAQ:COUP), which saw its share price soar 519% in three years. On top of that, the share price is up 24% in about a quarter.
It really delights us to see such great share price performance for investors.
View our latest analysis for Coupa Software
Coupa Software 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Coupa Software's revenue trended up 34% each year over three years. That's well above most pre-profit companies. And it's not just the revenue that is taking off. The share price is up 84% per year in that time. Despite the strong run, top performers like Coupa Software have been known to go on winning for decades. So we'd recommend you take a closer look at this one, or even put it on your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Coupa Software is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.
A Different Perspective
Pleasingly, Coupa Software's total shareholder return last year was 73%. But the three year TSR of 84% per year is even better. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 3 warning signs for Coupa Software (1 is concerning!) that you should be aware of before investing here.
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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 editorial-team@simplywallst.com. 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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