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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Suvo Strategic Minerals Limited (ASX:SUV) share price is 60% higher than it was a year ago, much better than the market return of around 20% (not including dividends) in the same period. So that should have shareholders smiling. However, the stock hasn't done so well in the longer term, with the stock only up 23% in three years.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
Because Suvo Strategic Minerals made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Suvo Strategic Minerals stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Suvo Strategic Minerals shareholders have gained 60% (in total) over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 7%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Suvo Strategic Minerals better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Suvo Strategic Minerals you should know about.
But note: Suvo Strategic Minerals may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.
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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