Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that Daseke, Inc. (NASDAQ:DSKE) stock has had a really bad year. The share price is down a hefty 59% in that time. Because Daseke hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 17% in about a quarter. That's not much fun for holders.
Given that Daseke 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Daseke grew its revenue by 50% over the last year. That's a strong result which is better than most other loss making companies. In contrast the share price is down 59% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think Daseke will earn in the future (free profit forecasts).
A Different Perspective
Given that the market gained 9.3% in the last year, Daseke shareholders might be miffed that they lost 59%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline has continued throughout the most recent three months, down 17%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.
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.
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