Yahoo Finance Frontier Group Holdings (NASDAQ:ULCC shareholders incur further losses as stock declines 15% this week, taking one-year losses to 58%
Investing in stocks comes with the risk that the share price will fall. Anyone who held Frontier Group Holdings, Inc. (NASDAQ:ULCC) over the last year knows what a loser feels like. To wit the share price is down 58% in that time. Frontier Group Holdings may have better days ahead, of course; we've only looked at a one year period. The falls have accelerated recently, with the share price down 34% in the last three months. Of course, this share price action may well have been influenced by the 14% decline in the broader market, throughout the period.
If the past week is anything to go by, investor sentiment for Frontier Group Holdings isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
View our latest analysis for Frontier Group Holdings
Frontier Group Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.
Frontier Group Holdings grew its revenue by 145% over the last year. That's a strong result which is better than most other loss making companies. In contrast the share price is down 58% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling Frontier Group Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We doubt Frontier Group Holdings shareholders are happy with the loss of 58% over twelve months. That falls short of the market, which lost 10%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 34%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Frontier Group Holdings (including 1 which can't be ignored) .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.
