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Announcing: SandRidge Energy (NYSE:SD) Stock Increased An Energizing 139% In The Last Year

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Simply Wall St
·3 min read
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When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the SandRidge Energy, Inc. (NYSE:SD) share price has soared 139% return in just a single year. On top of that, the share price is up 81% in about a quarter. On the other hand, longer term shareholders have had a tougher run, with the stock falling 65% in three years.

See our latest analysis for SandRidge Energy

SandRidge Energy wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year SandRidge Energy saw its revenue shrink by 50%. We're a little surprised to see the share price pop 139% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

If you are thinking of buying or selling SandRidge Energy stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that SandRidge Energy rewarded shareholders with a total shareholder return of 139% over the last year. That certainly beats the loss of about 18% per year over three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that SandRidge Energy is showing 1 warning sign in our investment analysis , you should know about...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.