The 13% return this week takes OptimizeRx's (NASDAQ:OPRX) shareholders one-year gains to 156%

It hasn't been the best quarter for OptimizeRx Corporation (NASDAQ:OPRX) shareholders, since the share price has fallen 24% in that time. But that doesn't detract from the splendid returns of the last year. During that period, the share price soared a full 156%. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

The past week has proven to be lucrative for OptimizeRx investors, so let's see if fundamentals drove the company's one-year performance.

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We don't think that OptimizeRx'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. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

OptimizeRx grew its revenue by 24% last year. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 156% as mentioned above. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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. So it makes a lot of sense to check out what analysts think OptimizeRx will earn in the future (free profit forecasts).

A Different Perspective

We're pleased to report that OptimizeRx shareholders have received a total shareholder return of 156% over one year. That certainly beats the loss of about 10% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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.

OptimizeRx is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.