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If You Had Bought Livongo Health (NASDAQ:LVGO) Shares A Year Ago You'd Have Earned763% Returns

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you find (and hold) a big winner, you can markedly improve your finances. In the case of Livongo Health, Inc. (NASDAQ:LVGO), the share price is up an incredible 763% in the last year alone. Also pleasing for shareholders was the 85% gain in the last three months. Livongo Health hasn't been listed for long, so it's still not clear if it is a long term winner.

It really delights us to see such great share price performance for investors.

View our latest analysis for Livongo Health

Given that Livongo Health didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Livongo Health grew its revenue by 128% last year. That's well above most other pre-profit companies. But the share price has really rocketed in response gaining 763% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

Livongo Health shareholders should be happy with the total gain of 763% over the last twelve months. That's better than the more recent three month gain of 85%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand Livongo Health better, we need to consider many other factors. Take risks, for example - Livongo Health has 4 warning signs we think you should be aware of.

Livongo Health is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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