When you buy shares in a company, there is always a risk that the price will drop to zero. But if you choose the right company to buy stocks, you can earn more than you can lose. For example, the International Game Technology PLC (NYSE: IGT) the share price has climbed 252% in the past year. Most would be very happy, especially in just a year! It’s also good to see the stock price rise 76% in the last quarter. Looking back, the share price is 84% higher than it was three years ago.
The past week has turned out to be lucrative for international investors in gaming technology. So let’s see if fundamentals have boosted the company’s year-over-year performance.
International Game Technology is currently unprofitable, so most analysts would look to revenue growth to get a sense of how fast the underlying business is growing. Generally speaking, companies with no profits are expected to increase their income every year, and at a good rate. Some companies are ready to postpone profitability to increase their revenue faster, but in this case, good revenue growth is expected.
Over the past year, International Game Technology has seen its revenue increase by 22%. That’s a pretty respectable growth rate. While this revenue growth is quite good, the stock price performance has outperformed it, with a 252% increase as mentioned above. Since the company has made good progress on revenue, it would be worth considering its path to profitability. Of course, we are always hesitant to succumb to the “fear of missing out” when a title has risen sharply.
You can see how income and income have changed over time in the image below (click on the graph to see the exact values).
The strength of the balance sheet is crucial. It might be worth taking a look at our free report on how your financial situation has changed over time.
A different perspective
It’s nice to see that International Game Technology shareholders have received a 252% total shareholder return over the past year. As the 1-year TSR is better than the 5-year TSR (the latter standing at 6% per year), it seems that the performance of the stock has improved in recent times. Someone with an optimistic outlook might view the recent improvement in TSR as indicating that the business itself is improving over time. 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. For example, we have identified 1 warning sign for International Game Technology that you need to be aware of.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of companies that we believe will increase their profits.
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 any of the stocks mentioned.
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