Revenue growth vs. CAGR

Someone (sorry, I don’t remember who) posted a list ranked by revenue growth suggesting that revenue growth propels stock price growth.

I downloaded five years of data from Yahoo (or as much as was available) and computed the CAGR from start to finish:


**Rank Symbol   Start        Open       End        Close  CAGR     Time**
 1   SHOP  2015-05-20   17.0000   2018-04-19  126.6700   99%   2 years 11 months
 2   WIX   2013-11-06   16.3100   2018-04-19   86.4500   45%   4 years 6 months
 3   TEAM  2015-12-09   21.0000   2018-04-19   62.2700   58%   2 years 4 months
 4   TWLO  2013-04-22    0.0010   2018-04-19   42.1100  743%   5 years 
 5   ZEN   2014-05-15   13.4300   2018-04-19   50.4800   40%   3 years 11 months
 6   NOW   2013-04-22   36.6700   2018-04-19  172.9900   36%   5 years 
 7   PFPT  2013-04-22   17.1700   2018-04-19  125.6300   49%   5 years 
 8   WDAY  2013-04-22   58.1500   2018-04-19  131.9700   18%   5 years 
 9   SPLK  2013-04-22   40.7100   2018-04-19  105.9100   21%   5 years 
10   RNG   2013-09-27   18.2000   2018-04-19   67.9000   33%   4 years 7 months
11   PAYC  2014-04-15   15.3500   2018-04-19  116.7600   66%   4 years 
12   PANW  2013-04-22   51.3800   2018-04-19  192.0200   30%   5 years 
13   VEEV  2013-10-16   37.1600   2018-04-19   74.5700   17%   4 years 6 months
14   SYMC  2013-04-22   17.0847   2018-04-19   27.8500   10%   5 years 
15   BOX   2015-01-23   23.2300   2018-04-19   21.3100   -3%   3 years 3 months
16   ADBE  2013-04-22   44.5300   2018-04-19  227.6200   39%   5 years 
17   CRM   2013-04-22   40.3200   2018-04-19  124.0600   25%   5 years 
18   RHT   2013-04-22   48.6100   2018-04-19  160.1400   27%   5 years 
19   ULTI  2013-04-22   92.8400   2018-04-19  248.7900   22%   5 years 
20   FTNT  2013-04-22   17.7800   2018-04-19   57.4100   26%   5 years 
21   MDSO  2013-04-22   27.0500   2018-04-19   73.4600   22%   5 years 
22   GWRE  2013-04-22   38.7000   2018-04-19   86.3600   17%   5 years 
23   RP    2013-04-22   19.7400   2018-04-19   55.2000   23%   5 years 
24   INTU  2013-04-22   59.5121   2018-04-19  179.4100   25%   5 years 
25   CSOD  2013-04-22   33.2900   2018-04-19   44.4500    6%   5 years 
26   MSFT  2013-04-22   27.0912   2018-04-19   96.1100   29%   5 years 
27   VMW   2013-04-22   73.7900   2018-04-19  135.5900   13%   5 years 
28   ATHN  2013-04-22   92.5600   2018-04-19  146.0600   10%   5 years 
29   ORCL  2013-04-22   30.2372   2018-04-19   46.8200    9%   5 years 
30   BLKB  2013-04-22   27.6961   2018-04-19  109.9300   32%   5 years 
31   AKAM  2013-04-22   34.2800   2018-04-19   72.4600   16%   5 years 
32   CHKP  2013-04-22   45.5900   2018-04-19  103.1000   18%   5 years 
33   ADSK  2013-04-22   36.2400   2018-04-19  132.3300   30%   5 years 
34   DATA  2013-05-17   50.7500   2018-04-19   84.3900   11%   4 years 11 months
35   SAP   2013-04-22   69.0221   2018-04-19  107.8700    9%   5 years 
36   CTXS  2013-04-22   53.4719   2018-04-19   97.2200   13%   5 years 
37   AZPN  2013-04-22   29.3400   2018-04-19   86.9100   24%   5 years 
38   FEYE  2013-09-20   36.0000   2018-04-19   18.8400  -13%   4 years 7 months
39   CA    2013-04-22   20.7562   2018-04-19   34.8400   11%   5 years 

There certainly is some correlation!

Denny Schlesinger

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