The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the 1957 & Co. (Hospitality) Limited (HKG:8495) share price is up 45% in the last year, clearly besting the market return of around 2.3% (not including dividends). That's a solid performance by our standards! 1957 (Hospitality) hasn't been listed for long, so it's still not clear if it is a long term winner.
Because 1957 (Hospitality) 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, 1957 (Hospitality)'s revenue grew by 5.9%. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 45% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. It could be worth keeping an eye on this one, especially if growth accelerates.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at 1957 (Hospitality)'s financial health with this free report on its balance sheet.
A Different Perspective
1957 (Hospitality) shareholders should be happy with the total gain of 45% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 10% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand 1957 (Hospitality) better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for 1957 (Hospitality) you should be aware of, and 1 of them can't be ignored.
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 HK exchanges.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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