Investors Who Bought Wide Open Agriculture (ASX:WOA) Shares A Year Ago Are Now Up 468%
For many, the main point of investing in the stock market is to achieve spectacular returns. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, Wide Open Agriculture Limited (ASX:WOA) has generated a beautiful 468% return in just a single year. Unfortunately, though, the stock has dropped 7.0% over a week. Wide Open Agriculture hasn't been listed for long, so it's still not clear if it is a long term winner.
View our latest analysis for Wide Open Agriculture
Wide Open Agriculture isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Wide Open Agriculture grew its revenue by 395% last year. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 468% 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.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
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 Wide Open Agriculture's earnings, revenue and cash flow.
A Different Perspective
It's nice to see that Wide Open Agriculture shareholders have gained 468% over the last year. Unfortunately the share price is down 1.2% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand Wide Open Agriculture better, we need to consider many other factors. For instance, we've identified 4 warning signs for Wide Open Agriculture (2 don't sit too well with us) that you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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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