Buying shares in the best businesses can build meaningful wealth for you and your family. And we’ve seen some truly amazing gains over the years. For example, the Alphatec Holdings, Inc. (NASDAQ:ATEC) share price is up a whopping 533% in the last half decade, a handsome return for long term holders. If that doesn’t get you thinking about long term investing, we don’t know what will. In more good news, the share price has risen 17% in 30 days. It really delights us to see such great share price performance for investors.
Since the stock has added US$205m to its market cap in the past week alone, let’s see if the underlying performance has been driving long-term returns.
See our latest analysis for Alphatec Holdings
Alphatec Holdings isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn’t make profits, we’d generally expect to see good 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 Alphatec Holdings saw its revenue grow at 32% per year. Even measured against other revenue-focused companies, that’s a good result. Fortunately, the market has not missed this, and has pushed the price share up by 45% per year in that time. Despite the strong run, top performers like Alphatec Holdings have been known to go on winning for decades. So we’d recommend you take a closer look at this one, but keep in mind the market seems optimistic.
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. If you are thinking of buying or selling Alphatec Holdings stock, you should check this out free report showing analyst profit forecasts.
A Different Perspective
It’s nice to see that Alphatec Holdings shareholders have received a total shareholder return of 169% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 45% per year), it would seem that the stock’s performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It’s always interesting to track price share performance over the longer term. But to understand Alphatec Holdings better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we’ve spotted with Alphatec Holdings (including 1 which is concerning) .
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 are currently traded on American exchanges.
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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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