One way to deal with stock volatility is to ensure you have a properly diverse portfolio. But the goal is to pick stocks that do better than average. Change Healthcare Inc. (NASDAQ:CHNG) has done well over the last year, with the stock price up 18% beating the market return of 17% (not including dividends). We’ll need to follow Change Healthcare for a while to get a better sense of its share price trend, since it hasn’t been listed for particularly long.
Because Change Healthcare made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
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 it makes a lot of sense to check out what analysts think Change Healthcare will earn in the future (free profit forecasts).
A Different Perspective
We’re happy to report that Change Healthcare are up 18% over the year. Unfortunately this falls short of the market return of around 20%. Shareholders are doubtless excited that the stock price has been doing even better lately, with a gain of 20% in just ninety days. The very recent increase in the share price could be evidence that the narrative is changing for the better due to fundamental improvements. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares – and the price they paid.
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.
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.