Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Brookdale Senior Living Inc. (NYSE:BKD) share price has soared 216% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 43% in about a quarter. Zooming out, the stock is actually down 6.3% in the last three years.

See our latest analysis for Brookdale Senior Living

Brookdale Senior Living wasn't profitable in the last twelve months, 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. 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 year Brookdale Senior Living saw its revenue shrink by 16%. So we would not have expected the share price to rise 216%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Brookdale Senior Living's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Brookdale Senior Living has rewarded shareholders with a total shareholder return of 216% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 2 warning signs we've spotted with Brookdale Senior Living .

Of course Brookdale Senior Living may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.