Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in Accel Entertainment, Inc. (NYSE:ACEL) have tasted that bitter downside in the last year, as the share price dropped 24%. That’s well bellow the market return of -11%. Because Accel Entertainment hasn’t been listed for many years, the market is still learning about how the business performs. The last month has also been disappointing, with the stock slipping a further 42%. We do note, however, that the broader market is down 26% in that period, and this may have weighed on the share price.
View our latest analysis for Accel Entertainment
Given that Accel Entertainment 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.
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
NYSE:ACEL Income Statement, March 18th 2020
Take a more thorough look at Accel Entertainment’s financial health with this free report on its balance sheet.
A Different Perspective
We doubt Accel Entertainment shareholders are happy with the loss of 24% over twelve months. That falls short of the market, which lost 11%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. Notably, the loss over the last year isn’t as bad as the 38% drop in the last three months. So it seems like some holders have been dumping the stock of late – and that’s not bullish. 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. Like risks, for instance. Every company has them, and we’ve spotted 3 warning signs for Accel Entertainment (of which 1 can’t be ignored!) you should know about.
We will like Accel Entertainment better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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. Thank you for reading.