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Did You Manage To Avoid Hoylu's (STO:HOYLU) Painful 69% Share Price Drop?

Simply Wall St

The truth is that if you invest for long enough, you're going to end up with some losing stocks. But long term Hoylu AB (publ) (STO:HOYLU) shareholders have had a particularly rough ride in the last three year. So they might be feeling emotional about the 69% share price collapse, in that time. And more recent buyers are having a tough time too, with a drop of 68% in the last year. Unfortunately the share price momentum is still quite negative, with prices down 54% in thirty days. However, we note the price may have been impacted by the broader market, which is down 31% in the same time period.

See our latest analysis for Hoylu

Hoylu isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

OM:HOYLU Income Statement, March 21st 2020

Take a more thorough look at Hoylu's financial health with this free report on its balance sheet.

A Different Perspective

The last twelve months weren't great for Hoylu shares, which performed worse than the market, costing holders 67%. The market shed around 11%, no doubt weighing on the stock price. Shareholders have lost 32% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Hoylu better, we need to consider many other factors. For instance, we've identified 7 warning signs for Hoylu (3 are a bit unpleasant) that you should be aware of.

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 SE exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.