Tenable Holdings, Inc. (NASDAQ:TENB) shareholders should be happy to see the share price up 22% in the last month. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 31% in a year, falling short of the returns you could get by investing in an index fund.
Because Tenable Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.
In the last twelve months, Tenable Holdings increased its revenue by 33%. That's definitely a respectable growth rate. Meanwhile, the share price is down 31% over twelve months, which is disappointing given the progress made. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Tenable Holdings is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Tenable Holdings stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
Tenable Holdings shareholders are down 31% for the year, even worse than the market loss of 4.9%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 16%, 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. 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. For example, we've discovered 3 warning signs for Tenable Holdings (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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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