How Important Was Sentiment In Driving New Age Beverages's (NASDAQ:NBEV) Fantastic 1049% Share Price Gain?

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Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. You won't get it right every time, but when you do, the returns can be truly splendid. Take, for example, the New Age Beverages Corporation (NASDAQ:NBEV) share price, which skyrocketed 1049% over three years. Then again, the 9.9% share price decline hasn't been so fun for shareholders. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

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

Check out our latest analysis for New Age Beverages

New Age Beverages isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years New Age Beverages has grown its revenue at 59% annually. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 126% per year in that time. Despite the strong run, top performers like New Age Beverages have been known to go on winning for decades. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.

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

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on New Age Beverages

A Different Perspective

It's nice to see that New Age Beverages shareholders have gained 133% (in total) over the last year. That gain actually surpasses the 126% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at [email protected]. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.