[ad_1]
Some have more money than sense, they say, so even companies that have no income, no profit and a reputation for bankruptcy can easily find investors. And in their study titled Who falls prey to the wolf on Wall Street? ' Leuz and. Al. Have found that it is "fairly common" for investors to lose money by buying "pumping and unloading" programs.
In the era of investing in Tech-Stock's blue sky, my choice may seem out of fashion; I always prefer profitable businesses like Addus HomeCare (NASDAQ: ADUS). Although profit is not necessarily a social good, it is easy to admire a company instead of producing it systematically. Lossy businesses are still struggling against time to achieve financial viability, but time is often a friend of the profitable business, especially if it is growing.
Do you want to participate in a short research study? Help us shape the future of investment tools and get a chance to win a $ 250 gift card!
Check out our latest Addus HomeCare reviews
How fast is Addus HomeCare growing?
If a company manages to maintain a sufficiently long earnings per share (EPS), the price of its action will eventually follow. Therefore, there are many investors who like to buy stocks of companies growing earnings per share. Impressively, Addus HomeCare has increased earnings per share by 18% a year, compounded over the past three years. As a general rule, we would say that if a company can follow this kind of growth, shareholders will smile.
A close look at earnings growth and profit before interest and taxes (EBIT) margins can help give some idea of the sustainability of recent earnings growth. Addus HomeCare has maintained stable EBIT margins over the past year, while increasing revenue 28% to $ 548 million. It's really positive.
The graph below shows the evolution of the lower and upper lines of the company. For more details, click on the image.
By investing, as in life, the future counts more than the past. So why not check this free interactive visualization of Addus HomeCare provide benefits?
Are Addus HomeCare insiders aligned with all shareholders?
I feel safer owning shares in a company if insiders also own shares, which aligns our interests more closely. As a result, I am encouraged by the fact that insiders own Addus HomeCare shares of considerable value. To be precise, they have 15 million dollars of stock. This demonstrates strong adherence and may indicate a belief in the business strategy. Even if it is only about 1.7% of the company, this money is enough to indicate an alignment between the directors of the company and the ordinary shareholders.
Addus HomeCare is it worth keeping an eye on?
For growing investors like me, Addus HomeCare's gross profit growth rate is a beacon at night. In addition, the high level of insider buying impresses me and suggests that I am not alone in appreciating EPS growth. Rapid growth and confident insiders should be enough to justify further research. The answer is therefore that I think it's a good stock to follow. Although we have examined the quality of the profits, we have not yet worked on the valuation of the security. Therefore, if you want to buy cheap, you can check if Addus HomeCare is trading on a high or low P / E, relative to its sector.
Although Addus HomeCare I like, I would love it more if insiders bought shares. If you like insider shopping, too, then this free list of growing businesses purchased by insiders, could be exactly what you are looking for.
Please note that the insider transactions described in this article refer to transactions to be reported in the relevant jurisdiction.
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
These excellent dividend stocks beat your savings account
Not only have these stocks been reliable dividend payers for 10 years, but, with a return of more than 3%, they also easily beat your savings account (not to mention any capital gains). Click here to view them for free on Simply Wall St.
Source link
