Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. For example, the DigitalBridge Group, Inc. (NYSE:DBRG) share price is up 38% in the last 1 year, clearly besting the market return of around 21% (not including dividends). So that should have shareholders smiling. On the other hand, longer term shareholders have had a tougher run, with the stock falling 7.3% in three years.
The past week has proven to be lucrative for DigitalBridge Group investors, so let's see if fundamentals drove the company's one-year performance.
View our latest analysis for DigitalBridge Group
Given that DigitalBridge Group didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong 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.
Over the last twelve months, DigitalBridge Group's revenue grew by 28%. That's a fairly respectable growth rate. Buyers pushed the share price 38% in response, which isn't unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on DigitalBridge Group's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's good to see that DigitalBridge Group has rewarded shareholders with a total shareholder return of 38% in the last twelve months. And that does include the dividend. That's better than the annualised return of 2% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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