The maximum you can lose on any stock (assuming you’re not using leverage) is 100% of your money. But when you choose a business that is truly successful, you can Make more than 100%. For example, the International Game Technology PLC (NYSE: IGT) The stock price has climbed 242% in a single year. The 62% gain over the past three months has also pleased shareholders. Looking back, the stock price is 82% higher than it was three years ago.
Based on a strong 7-day performance, let’s check out what role company fundamentals have played in generating long-term returns for shareholders.
See our latest review for International Game Technology
Since International Game Technology has not made a profit in the past twelve months, we will focus on revenue growth to get a quick view of its business development. Generally speaking, companies with no profits are expected to increase their income every year, and at a good rate. Indeed, the rapid growth in income can be easily extrapolated to the expected profits, often of considerable size.
Over the past year, International Game Technology has seen its revenue increase by 22%. We respect that kind of growth, without a doubt. While this revenue growth is quite good, the stock price performance has outperformed it, with a 242% increase as mentioned above. If profitability is on the horizon, this could be a very exciting time to be a shareholder. But investors should be wary of how the “fear of missing out” might influence them to buy without doing extensive research.
The company’s revenue and profits (over time) are shown in the image below (click to see exact numbers).
This free International Game Technology’s interactive balance sheet strength report is a great place to start if you want to delve deeper into the stock market.
A different perspective
It’s good to see that International Game Technology has rewarded its shareholders with a total shareholder return of 242% over the past twelve months. As the 1-year TSR is better than the 5-year TSR (the latter standing at 6% per year), it seems that the stock’s performance has improved in recent times. Since stock price dynamics remain strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It is always interesting to follow the evolution of stock prices over the long term. But to better understand International Game Technology, there are many other factors that we need to consider. Take risks, for example – International Game Technology has 1 warning sign we think you should be aware.
We will prefer International Game Technology if we see large insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on US stock exchanges.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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