Investors Who Bought I-Tech (STO:ITECH) Shares A Year Ago Are Now Up 23%
We believe investing is smart because history shows that stock markets go higher in the long term. But if you choose that path, you're going to buy some stocks that fall short of the market. Over the last year the I-Tech AB (STO:ITECH) share price is up 23%, but that's less than the broader market return. I-Tech hasn't been listed for long, so it's still not clear if it is a long term winner.
Check out our latest analysis for I-Tech
We don't think that I-Tech's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. 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.
I-Tech grew its revenue by 57% last year. That's a head and shoulders above most loss-making companies. Let's face it the 23% share price gain in that time is underwhelming compared to the growth. When revenue spikes but the share price doesn't we can't help wondering if the market is missing something. It could be that the stock was previously over-hyped, or that losses are causing concern for the market, but this could be an opportunity.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We know that I-Tech 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 I-Tech will earn in the future (free profit forecasts).
A Different Perspective
I-Tech shareholders have gained 23% for the year. While it's always nice to make a profit on the stock market, we do note that the TSR was no better than the broader market return of about 29%. Shareholders are doubtless excited that the stock price has been doing even better lately, with a gain of 38% in just ninety days. It's worth taking note when returns accelerate, as it can indicate positive change in the underlying business, and winners often keep winning. It's always interesting to track share price performance over the longer term. But to understand I-Tech better, we need to consider many other factors. For example, we've discovered 3 warning signs for I-Tech that you should be aware of before investing here.
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 SE exchanges.
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.
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. Thank you for reading.
