Neosperience (BIT:NSP) Shareholders Have Enjoyed A 51% Share Price Gain

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, the Neosperience S.p.A. (BIT:NSP) share price is up 51% in the last year, clearly besting the market return of around 19% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Neosperience for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Neosperience

Given that Neosperience only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over the last twelve months, Neosperience's revenue grew by 47%. That's a head and shoulders above most loss-making companies. The solid 51% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate Neosperience in some detail. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We know that Neosperience has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Neosperience's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Neosperience shareholders should be happy with the total gain of 51% over the last twelve months. Unfortunately the share price is down 4.7% 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. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Neosperience (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

We will like Neosperience better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IT exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.