U.S. Markets close in 1 hr 59 mins
  • S&P 500

    4,154.35
    -34.08 (-0.81%)
     
  • Dow 30

    34,297.09
    -445.73 (-1.28%)
     
  • Nasdaq

    13,389.02
    -12.84 (-0.10%)
     
  • Russell 2000

    2,211.33
    -1.36 (-0.06%)
     
  • Crude Oil

    65.39
    +0.47 (+0.72%)
     
  • Gold

    1,835.90
    -1.70 (-0.09%)
     
  • Silver

    27.55
    +0.07 (+0.24%)
     
  • EUR/USD

    1.2161
    +0.0027 (+0.2189%)
     
  • 10-Yr Bond

    1.6240
    +0.0220 (+1.37%)
     
  • Vix

    21.20
    +1.54 (+7.83%)
     
  • GBP/USD

    1.4162
    +0.0041 (+0.2889%)
     
  • USD/JPY

    108.6070
    -0.2340 (-0.2150%)
     
  • BTC-USD

    56,516.64
    -342.40 (-0.60%)
     
  • CMC Crypto 200

    1,506.96
    +1,264.28 (+520.97%)
     
  • FTSE 100

    6,947.99
    -175.69 (-2.47%)
     
  • Nikkei 225

    28,608.59
    -909.71 (-3.08%)
     

Did You Miss Zix's (NASDAQ:ZIXI) 99% Share Price Gain?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Zix Corporation (NASDAQ:ZIXI) shareholders have seen the share price descend 23% over the month. On the bright side the share price is up over the last half decade. However we are not very impressed because the share price is only up 99%, less than the market return of 121%.

View our latest analysis for Zix

Zix 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years Zix saw its revenue grow at 33% per year. Even measured against other revenue-focussed companies, that's a good result. It's good to see that the stock has 15%, but not entirely surprising given revenue shows strong growth. If the strong revenue growth continues, we'd expect the share price to follow, in time. Of course, you'll have to research the business more fully to figure out if this is an attractive opportunity.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

Zix provided a TSR of 29% over the last twelve months. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 15% per year over five year. This suggests the company might be improving over time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for Zix that you should be aware of.

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.