ACV Auctions (NASDAQ:ACVA) investors are sitting on a loss of 12% if they invested a year ago
It is a pleasure to report that the ACV Auctions Inc. (NASDAQ:ACVA) is up 45% in the last quarter. In contrast, the stock is down for the year. But it did better than its market, which fell 12%.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for ACV Auctions
Given that ACV Auctions didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year ACV Auctions saw its revenue grow by 18%. That's definitely a respectable growth rate. Considering the limp overall market, the share price loss of 12% over the year isn't too bad. We'd venture the revenue growth helped inspire some faith from holders. So growth investors might like to put this one on the watchlist to see if revenue keeps trending in the right direction.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
ACV Auctions is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for ACV Auctions in this interactive graph of future profit estimates.
A Different Perspective
ACV Auctions shareholders are down 12% over twelve months. That's reasonably close to the the market return of -12%. On the bright side, the stock has regained 45% in the last ninety days. The selling may have been overdone, so it may be worth taking a closer look at the data to assess its growth potential. If you would like to research ACV Auctions in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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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