For many, the main point of investing in the stock market is to achieve spectacular returns. When you find (and hold) a big winner, you can markedly improve your finances. In the case of Upwork Inc. (NASDAQ:UPWK), the share price is up an incredible 360% in the last year alone. It’s also good to see the share price up 131% over the last quarter. Upwork hasn’t been listed for long, so it’s still not clear if it is a long term winner.
See our latest analysis for Upwork
Upwork 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 expect to see good revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Upwork grew its revenue by 21% last year. That’s a fairly respectable growth rate. Arguably it’s more than reflected in the truly wondrous share price gain of 360% 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 Upwork.
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. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Upwork in this interactive graph of future profit estimates.
A Different Perspective
Upwork shareholders should be happy with the total gain of 360% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 131% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Upwork is showing 3 warning signs in our investment analysis , you should know about…
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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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