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Did Dogness (International)'s (NASDAQ:DOGZ) Share Price Deserve to Gain 46%?

Simply Wall St
·3 min read

If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. For example, the Dogness (International) Corporation (NASDAQ:DOGZ) share price is up 46% in the last year, clearly besting the market return of around 9.6% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Dogness (International) for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for Dogness (International)

Given that Dogness (International) only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year Dogness (International) saw its revenue shrink by 27%. Despite the lack of revenue growth, the stock has returned a solid 46% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that Dogness (International) shareholders have gained 46% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 94% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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 Dogness (International) is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

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@simplywallst.com.