Yahoo Finance If You Had Bought Bausch Health Companies (NYSE:BHC) Stock Three Years Ago, You Could Pocket A 109% Gain Today
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. To wit, the Bausch Health Companies Inc. (NYSE:BHC) share price has flown 109% in the last three years. How nice for those who held the stock! It's also good to see the share price up 31% over the last quarter.
Check out our latest analysis for Bausch Health Companies
Bausch Health Companies isn't a profitable company, so 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Bausch Health Companies actually saw its revenue drop by 5.8% per year over three years. So the share price gain of 28% per year is quite surprising. It's fair to say shareholders are definitely counting on a bright future.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Bausch Health Companies will earn in the future (free profit forecasts).
A Different Perspective
We're pleased to report that Bausch Health Companies shareholders have received a total shareholder return of 41% over one year. There's no doubt those recent returns are much better than the TSR loss of 27% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.
There are plenty of other companies that have insiders buying up shares. You probably do 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.
