Yahoo Finance Did The Underlying Business Drive ChemoCentryx's (NASDAQ:CCXI) Lovely 423% Share Price Gain?
For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held ChemoCentryx, Inc. (NASDAQ:CCXI) shares for the last five years, while they gained 423%. If that doesn't get you thinking about long term investing, we don't know what will. Also pleasing for shareholders was the 407% gain in the last three months.
View our latest analysis for ChemoCentryx
Because ChemoCentryx made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
For the last half decade, ChemoCentryx can boast revenue growth at a rate of 34% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 39%(per year) over the same period. It's never too late to start following a top notch stock like ChemoCentryx, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at ChemoCentryx's financial health with this free report on its balance sheet.
A Different Perspective
It's good to see that ChemoCentryx has rewarded shareholders with a total shareholder return of 213% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 39% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. You could get a better understanding of ChemoCentryx's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
