Introducing Real Brokerage (CVE:REAX), The Stock That Soared 919% In The Last Year
Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, The Real Brokerage Inc. (CVE:REAX) has generated a beautiful 919% return in just a single year. It's also up 41% in about a month. We'll need to follow Real Brokerage for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
It really delights us to see such great share price performance for investors.
View our latest analysis for Real Brokerage
Given that Real Brokerage 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Real Brokerage grew its revenue by 65% last year. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 919% as previously highlighted. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
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. It might be well worthwhile taking a look at our free report on Real Brokerage's earnings, revenue and cash flow.
A Different Perspective
Real Brokerage shareholders should be happy with the total gain of 919% over the last twelve months. That's better than the more recent three month gain of 5.0%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand Real Brokerage better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Real Brokerage you should know about.
Real Brokerage is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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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