Even the best stock pickers will make plenty of bad investments. And unfortunately for AngioDynamics, Inc. (NASDAQ:ANGO) shareholders, the stock is a lot lower today than it was a year ago. The share price has slid 52% in that time. We note that it has not been easy for shareholders over three years, either; the share price is down 37% in that time. Even worse, it’s down 15% in about a month, which isn’t fun at all.
See our latest analysis for AngioDynamics
Given that AngioDynamics 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. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last twelve months, AngioDynamics increased its revenue by 35%. We think that is pretty nice growth. Unfortunately it seems investors wanted more, because the share price is down 52% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. For us it’s important to consider when you think a company will become profitable, if you’re basing your valuation on revenue.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
NasdaqGS:ANGO Earnings and Revenue Growth July 8th 2020
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for AngioDynamics in this interactive graph of future profit estimates.
A Different Perspective
AngioDynamics shareholders are down 52% for the year, but the market itself is up 8.2%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year’s performance caps off a bad run, with the shareholders facing a total loss of 8.6% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. Even so, be aware that AngioDynamics is showing 1 warning sign in our investment analysis , you should know about…
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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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