If You Had Bought BrightView Holdings (NYSE:BV) Stock A Year Ago, You'd Be Sitting On A 14% Loss, Today
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While not a mind-blowing move, it is good to see that the BrightView Holdings, Inc. (NYSE:BV) share price has gained 27% in the last three months. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact the stock is down 14% in the last year, well below the market return.
See our latest analysis for BrightView Holdings
BrightView Holdings isn't a profitable company, so 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. 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 just one year BrightView Holdings saw its revenue fall by 0.05%. That's not what investors generally want to see. Shareholders have seen the share price drop 14% in that time. What would you expect when revenue is falling, and it doesn't make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for BrightView Holdings in this interactive graph of future profit estimates.
A Different Perspective
While BrightView Holdings shareholders are down 14% for the year, the market itself is up 6.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 27% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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.
There are plenty of other companies that have insiders buying up shares. You probably do 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.
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.
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. Thank you for reading.
