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Introducing Surgical Science Sweden (STO:SUS), The Stock That Soared 313% In The Last Year

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. While not every stock performs well, when investors win, they can win big. In the case of Surgical Science Sweden AB (publ) (STO:SUS), the share price is up an incredible 313% in the last year alone. Also pleasing for shareholders was the 44% gain in the last three months. We'll need to follow Surgical Science Sweden for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Surgical Science Sweden

We don't think that Surgical Science Sweden's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year Surgical Science Sweden saw its revenue grow by 47%. That's a head and shoulders above most loss-making companies. But the share price has really rocketed in response gaining 313% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

OM:SUS Income Statement, January 24th 2020
OM:SUS Income Statement, January 24th 2020

We know that Surgical Science Sweden has improved its bottom line lately, but what does the future have in store? So we recommend checking out this free report showing consensus forecasts

A Different Perspective

It's nice to see that Surgical Science Sweden shareholders have gained 313% over the last year. That's better than the more recent three month gain of 44%, implying that share price has plateaued recently. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with Surgical Science Sweden .

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 SE exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.