Yahoo Finance Did Zoomd Technologies' (CVE:ZOMD) Share Price Deserve to Gain 48%?
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Zoomd Technologies Ltd. (CVE:ZOMD) share price is up 48% in the last year, clearly besting the market return of around 3.8% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Zoomd Technologies for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Check out our latest analysis for Zoomd Technologies
Given that Zoomd Technologies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Zoomd Technologies actually shrunk its revenue over the last year, with a reduction of 2.6%. Despite the lack of revenue growth, the stock has returned a solid 48% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling Zoomd Technologies stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Zoomd Technologies boasts a total shareholder return of 48% for the last year. And the share price momentum remains respectable, with a gain of 271% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Zoomd Technologies (at least 1 which is concerning) , and understanding them should be part of your investment process.
But note: Zoomd Technologies 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 CA exchanges.
This article by Simply Wall St is general in nature. 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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