International Game Technology (NYSE:IGT) delivers shareholders solid 252% return over 1 year, surging 5.9% in the last week alone

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the International Game Technology PLC (NYSE:IGT) share price has soared 252% in the last 1 year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 76% over the last quarter. Looking back further, the stock price is 84% higher than it was three years ago.

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

View our latest analysis for International Game Technology

International Game Technology isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year International Game Technology saw its revenue grow by 22%. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 252% 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. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that International Game Technology shareholders have received a total shareholder return of 252% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 6% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand International Game Technology better, we need to consider many other factors. For instance, we've identified 1 warning sign for International Game Technology that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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.

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