Can You Imagine How Jubilant GTEC Holdings' (CVE:GTEC) Shareholders Feel About Its 288% Share Price Gain?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example GTEC Holdings Ltd. (CVE:GTEC). Its share price is already up an impressive 288% in the last twelve months. Shareholders are also celebrating an even better 457% rise, over the last three months. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

View our latest analysis for GTEC Holdings

GTEC 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

GTEC Holdings grew its revenue by 420% last year. That's stonking growth even when compared to other loss-making stocks. And the share price has responded, gaining 288% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on GTEC Holdings' earnings, revenue and cash flow.

A Different Perspective

GTEC Holdings boasts a total shareholder return of 288% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 457% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that GTEC Holdings is showing 4 warning signs in our investment analysis , and 1 of those is a bit concerning...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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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