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One simple way to benefit from the stock market is to buy an index fund. But if you pick the right individual stocks, you could make more than that. Just take a look at MedAdvisor Limited (ASX:MDR), which is up 96%, over three years, soundly beating the market return of 4.3% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 37%.
Check out our latest analysis for MedAdvisor
MedAdvisor 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.
MedAdvisor's revenue trended up 33% each year over three years. That's much better than most loss-making companies. While the compound gain of 25% per year over three years is pretty good, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at MedAdvisor. A window of opportunity may reveal itself with time, if the business can trend to profitability.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling MedAdvisor stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that MedAdvisor rewarded shareholders with a total shareholder return of 37% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 25%. Given the track record of solid returns over varying time frames, it might be worth putting MedAdvisor on your watchlist. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 4 warning signs we've spotted with MedAdvisor (including 1 which is is significant) .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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