Reporting season is only a few weeks away, it won't be long before we start learning whether some companies have some great news or disappointing updates to tell the market.
I love reporting season because for most shares you only get a true insight into how the business is doing in the half-year and full-year report. Although, sometimes there might be a trading update during the year which is particularly positive or negative.
Share prices are mostly forward looking. That means that if the market believes a company's profit is going to impress or disappoint at the next report the share price will go upwards (or downwards) before we see the profit figures. It's only during reporting season when we learn whether the market was right or not.
The overall share market has done very well over the past year with the ALL ORDINARIES (Index:^AXAO) (ASX:XAO) returning over 10% including dividends.
However, there are some shares which have grown by much, much more over the past year:
GetSwift Ltd (ASX: GSW) has grown by 957%
Updater Inc (ASX: UPD) has grown by 198%
Yojee Ltd (ASX: YOJ) has grown by 650%
All three of these companies have released impressive updates, but there are quite a few doubters out there. There are some tech companies like Afterpay Touch Group Ltd (ASX: APT) and Big Un Ltd (ASX: BIG) where the share prices have also grown strongly, but the quarterly revenue is growing at these businesses at strong rates.
GetSwift, Updater and Yojee have the perfect opportunity to show the market about the financial progress they have made over the last six months in reporting season next month. Investors' patience may start to wear thin if revenue growth still seems like it's on the distant horizon.
Instead, I'd rather buy shares of companies which are showing clear signs of revenue growth today, such as these three exciting stocks.
