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Buying shares in the best businesses can build meaningful wealth for you and your family. And highest quality companies can see their share prices grow by huge amounts. Just think about the savvy investors who held LifeMD, Inc. (NASDAQ:LFMD) shares for the last five years, while they gained 754%. If that doesn't get you thinking about long term investing, we don't know what will. On top of that, the share price is up 25% in about a quarter. Anyone who held for that rewarding ride would probably be keen to talk about it.
Since it's been a strong week for LifeMD shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for LifeMD
Because LifeMD 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last 5 years LifeMD saw its revenue grow at 40% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 54% per year in that time. It's never too late to start following a top notch stock like LifeMD, since some long term winners go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at LifeMD's financial health with this free report on its balance sheet.
A Different Perspective
LifeMD shareholders are up 5.7% for the year. Unfortunately this falls short of the market return. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 54% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. It's always interesting to track share price performance over the longer term. But to understand LifeMD better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with LifeMD (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.
For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.