Yahoo Finance Investors are selling off Clarivate (NYSE:CLVT), lack of profits no doubt contribute to shareholders three-year loss
While it may not be enough for some shareholders, we think it is good to see the Clarivate Plc (NYSE:CLVT) share price up 14% in a single quarter. Meanwhile over the last three years the stock has dropped hard. Indeed, the share price is down a tragic 54% in the last three years. So it's good to see it climbing back up. Perhaps the company has turned over a new leaf.
If the past week is anything to go by, investor sentiment for Clarivate isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
View our latest analysis for Clarivate
Clarivate isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over three years, Clarivate grew revenue at 37% per year. That's well above most other pre-profit companies. In contrast, the share price is down 16% compound, over three years - disappointing by most standards. This could mean hype has come out of the stock because the losses are concerning investors. When we see revenue growth, paired with a falling share price, we can't help wonder if there is an opportunity for those who are willing to dig deeper.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Clarivate stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
The last twelve months weren't great for Clarivate shares, which performed worse than the market, costing holders 44%. Meanwhile, the broader market slid about 13%, likely weighing on the stock. Shareholders have lost 16% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
If you are like me, then you will 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 American exchanges.
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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.
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