Yahoo Finance Investors in Seagen (NASDAQ:SGEN) have made a incredible return of 307% over the past five years
Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held Seagen Inc. (NASDAQ:SGEN) shares for the last five years, while they gained 307%. If that doesn't get you thinking about long term investing, we don't know what will. It's also good to see the share price up 54% over the last quarter.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
See our latest analysis for Seagen
Seagen isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
In the last 5 years Seagen saw its revenue grow at 28% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 32%(per year) over the same period. It's never too late to start following a top notch stock like Seagen, 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 graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Seagen is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Seagen stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
It's nice to see that Seagen shareholders have received a total shareholder return of 42% over the last year. That's better than the annualised return of 32% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
But note: Seagen may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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