Yahoo Finance The Golden Entertainment (NASDAQ:GDEN) Share Price Is Up 351% And Shareholders Are Delighted
While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. While not every stock performs well, when investors win, they can win big. For example, Golden Entertainment, Inc. (NASDAQ:GDEN) has generated a beautiful 351% return in just a single year. On top of that, the share price is up 87% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. And shareholders have also done well over the long term, with an increase of 32% in the last three years.
See our latest analysis for Golden Entertainment
Given that Golden Entertainment didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 year Golden Entertainment saw its revenue shrink by 23%. So it's very confusing to see that the share price gained a whopping 351%. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. While this gain looks like speculative buying to us, sometimes speculation pays off.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Golden Entertainment's financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that Golden Entertainment shareholders have received a total shareholder return of 351% over the last year. That's better than the annualised return of 31% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Golden Entertainment better, we need to consider many other factors. Even so, be aware that Golden Entertainment is showing 2 warning signs in our investment analysis , you should know about...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.
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