Yahoo Finance iRhythm Technologies' (NASDAQ:IRTC) growing losses don't faze investors as the stock advances 3.4% this past week
iRhythm Technologies, Inc. (NASDAQ:IRTC) shareholders might be concerned after seeing the share price drop 27% in the last quarter. But in stark contrast, the returns over the last half decade have impressed. In fact, the share price is 110% higher today. Generally speaking the long term returns will give you a better idea of business quality than short periods can. The more important question is whether the stock is too cheap or too expensive today.
The past week has proven to be lucrative for iRhythm Technologies investors, so let's see if fundamentals drove the company's five-year performance.
See our latest analysis for iRhythm Technologies
Because iRhythm Technologies 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 5 years iRhythm Technologies saw its revenue grow at 26% per year. Even measured against other revenue-focussed companies, that's a good result. So it's not entirely surprising that the share price reflected this performance by increasing at a rate of 16% per year, in that time. This suggests the market has well and truly recognized the progress the business has made. iRhythm Technologies seems like a high growth stock - so growth investors might want to add it to their watchlist.
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 iRhythm Technologies' financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that iRhythm Technologies shareholders have received a total shareholder return of 2.4% over one year. However, the TSR over five years, coming in at 16% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand iRhythm Technologies better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for iRhythm Technologies you should know about.
But note: iRhythm Technologies 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 US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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