If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) share price is up 63% in the last 1 year, clearly besting the market return of around 34% (not including dividends). That's a solid performance by our standards! In contrast, the longer term returns are negative, since the share price is 16% lower than it was three years ago.
The past week has proven to be lucrative for Lindblad Expeditions Holdings investors, so let's see if fundamentals drove the company's one-year performance.
See our latest analysis for Lindblad Expeditions Holdings
Lindblad Expeditions 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 hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.
Lindblad Expeditions Holdings grew its revenue by 11% last year. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 63%. That's not a standout result, but it is solid - much like the level of revenue growth. It could be worth keeping an eye on this one, especially if growth accelerates.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on Lindblad Expeditions Holdings
It's nice to see that Lindblad Expeditions Holdings shareholders have received a total shareholder return of 63% over the last year. There's no doubt those recent returns are much better than the TSR loss of 2% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Lindblad Expeditions Holdings better, we need to consider many other factors. Even so, be aware that Lindblad Expeditions Holdings is showing 1 warning sign in our investment analysis , you should know about...
Lindblad Expeditions Holdings is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade 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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