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Announcing: Lions Gate Entertainment (NYSE:LGF.A) Stock Increased An Energizing 160% In The Last Year

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Simply Wall St
·3 min read
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Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Lions Gate Entertainment Corp. (NYSE:LGF.A) share price has soared 160% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 50% gain in the last three months. Zooming out, the stock is actually down 37% in the last three years.

See our latest analysis for Lions Gate Entertainment

Because Lions Gate Entertainment 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. 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.

Lions Gate Entertainment actually shrunk its revenue over the last year, with a reduction of 13%. We're a little surprised to see the share price pop 160% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

Lions Gate Entertainment is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Lions Gate Entertainment stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

It's nice to see that Lions Gate Entertainment shareholders have gained 160% (in total) over the last year. That certainly beats the loss of about 11% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. It's always interesting to track share price performance over the longer term. But to understand Lions Gate Entertainment better, we need to consider many other factors. For example, we've discovered 2 warning signs for Lions Gate Entertainment (1 is a bit unpleasant!) 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 US exchanges.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.