Yahoo Finance Further weakness as Nutex Health (NASDAQ:NUTX) drops 24% this week, taking one-year losses to 89%
It's not a secret that every investor will make bad investments, from time to time. But it would be foolish to simply accept every extremely large loss as an inevitable part of the game. So we hope that those who held Nutex Health Inc. (NASDAQ:NUTX) during the last year don't lose the lesson, in addition to the 89% hit to the value of their shares. That'd be enough to make even the strongest stomachs churn. We wouldn't rush to judgement on Nutex Health because we don't have a long term history to look at. The falls have accelerated recently, with the share price down 53% in the last three months. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.
If the past week is anything to go by, investor sentiment for Nutex Health isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for Nutex Health
Given that Nutex Health 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In just one year Nutex Health saw its revenue fall by 34%. That's not what investors generally want to see. The share price fall of 89% in a year tells the story. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.
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 Nutex Health's financial health with this free report on its balance sheet.
A Different Perspective
We doubt Nutex Health shareholders are happy with the loss of 89% over twelve months. That falls short of the market, which lost 6.5%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 53%, 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. It's always interesting to track share price performance over the longer term. But to understand Nutex Health better, we need to consider many other factors. Take risks, for example - Nutex Health has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
