Can You Imagine How Elated Pacific Edge's (NZSE:PEB) Shareholders Feel About Its 720% Share Price Gain?

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. While not every stock performs well, when investors win, they can win big. In the case of Pacific Edge Limited (NZSE:PEB), the share price is up an incredible 720% in the last year alone. It's also good to see the share price up 52% over the last quarter. Also impressive, the stock is up 173% over three years, making long term shareholders happy, too.

Anyone who held for that rewarding ride would probably be keen to talk about it.

See our latest analysis for Pacific Edge

Given that Pacific Edge 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Pacific Edge grew its revenue by 28% last year. That's a fairly respectable growth rate. Arguably it's more than reflected in the truly wondrous share price gain of 720% in the last year. While we are always careful about jumping on a hot stock too late, there's certainly good reason to keep an eye on Pacific Edge.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Pacific Edge shareholders have received a total shareholder return of 720% over the last year. That gain is better than the annual TSR over five years, which is 19%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Pacific Edge better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Pacific Edge .

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 NZ 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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