NeoVolta (NASDAQ:NEOV) shareholders are up 18% this past week, but still in the red over the last year
It is doubtless a positive to see that the NeoVolta Inc. (NASDAQ:NEOV) share price has gained some 132% in the last three months. But in truth the last year hasn't been good for the share price. After all, the share price is down 22% in the last year, significantly under-performing the market.
The recent uptick of 18% could be a positive sign of things to come, so let's take a look at historical fundamentals.
See our latest analysis for NeoVolta
NeoVolta isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
NeoVolta's revenue didn't grow at all in the last year. In fact, it fell 20%. That's not what investors generally want to see. The stock price has languished lately, falling 22% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at NeoVolta's financial health with this free report on its balance sheet.
A Different Perspective
Over the last year, NeoVolta shareholders took a loss of 22%. In contrast the market gained about 8.8%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Fortunately the longer term story is brighter, with total returns averaging about 2.8% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. It's always interesting to track share price performance over the longer term. But to understand NeoVolta better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with NeoVolta (including 1 which doesn't sit too well with us) .
But note: NeoVolta may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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.
