Imagine owning shares of Varonis Systems (NASDAQ: VRNS) as the price rose 611%

Buying stocks in the best companies can create significant wealth for you and your family. While not all stocks work well, when investors win they can win big. You do not believe it ? Then watch the Varonis Systems, Inc. (NASDAQ: VRNS) share price. This is 611% higher than five years ago. If that doesn’t make you think about investing for the long term, we don’t know what will. It has also increased by 14% in about a month.

We love happy stories like this. The company should be really proud of this performance!

See our latest review for Varonis Systems

Since Varonis Systems has not made a profit in the past twelve months, we will focus on revenue growth to get a quick view of its business development. Shareholders of unprofitable companies generally expect strong revenue growth. This is because it is difficult to be sure that a business will be sustainable if the revenue growth is negligible and it never makes a profit.

Over the past 5 years, Varonis Systems has seen its turnover increase by 14% per year. That’s a pretty good long-term growth rate. Arguably, this is reflected more than in the very strong share price gain of 48% per year over half a decade. We generally like high growth stocks, but it looks like the market is already appreciating this one pretty well!

The graph below illustrates the evolution of earnings and income over time (reveal the exact values ​​by clicking on the image).

NasdaqGS: VRNS Earnings and Revenue Growth July 11, 2021

Varonis Systems is a well-known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Varonis Systems shares, you should check this out free report showing analysts’ consensus estimates for future earnings.

A different perspective

It is nice to see that Varonis Systems shareholders have received a total shareholder return of 76% over the past year. The 1-year TSR being better than the 5-year TSR (the latter standing at 48% per year), it seems that the performance of the stock has improved in recent times. Since the stock price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at the long-term share price as an indicator of company performance. But to really get an overview, we have to take other information into account as well. Take risks, for example – Varonis Systems has 4 warning signs we think you should be aware.

Of course, you might find a fantastic investment looking elsewhere. So take a look at this free list of companies that we believe will increase their profits.

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

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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