Yahoo Finance Some Wi2Wi (CVE:YTY) Shareholders Are Down 38%
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Investors can approximate the average market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Wi2Wi Corporation (CVE:YTY) share price slid 38% over twelve months. That's disappointing when you consider the market returned 0.6%. On the other hand, the stock is actually up 33% over three years. The silver lining is that the stock is up 6.7% in about a week.
Check out our latest analysis for Wi2Wi
Given that Wi2Wi only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.
Wi2Wi grew its revenue by 0.9% over the last year. That's not a very high growth rate considering it doesn't make profits. Given this lacklustre revenue growth, the share price drop of 38% seems pretty appropriate. It's important not to lose sight of the fact that profitless companies must grow. So remember, if you buy a profitless company then you risk being a profitless investor.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We know that Wi2Wi has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Wi2Wi will earn in the future (free profit forecasts).
A Different Perspective
While the broader market gained around 0.6% in the last year, Wi2Wi shareholders lost 38%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 2.7%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before deciding if you like the current share price, check how Wi2Wi scores on these 3 valuation metrics.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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.
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. Thank you for reading.
