Yahoo Finance Investors Who Bought Angling Direct (LON:ANG) Shares A Year Ago Are Now Down 45%
Investors can approximate the average market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Angling Direct plc (LON:ANG) share price slid 45% over twelve months. That falls noticeably short of the market return of around 5.1%. Because Angling Direct hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 15% in about a quarter. That's not much fun for holders.
See our latest analysis for Angling Direct
Angling Direct 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year Angling Direct saw its revenue grow by 39%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 45%. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on Angling Direct's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Given that the market gained 5.1% in the last year, Angling Direct shareholders might be miffed that they lost 45%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline has continued throughout the most recent three months, down 15%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
Of course Angling Direct may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
