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A Look At Ondas Holdings' (NASDAQ:ONDS) Share Price Returns

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Simply Wall St
·3 min read
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The nature of investing is that you win some, and you lose some. Anyone who held Ondas Holdings Inc. (NASDAQ:ONDS) over the last year knows what a loser feels like. In that relatively short period, the share price has plunged 68%. Ondas Holdings may have better days ahead, of course; we've only looked at a one year period. More recently, the share price has dropped a further 49% in a month.

View our latest analysis for Ondas Holdings

Given that Ondas Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Ondas Holdings grew its revenue by 371% over the last year. That's well above most other pre-profit companies. Meanwhile, the share price slid 68%. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Ondas Holdings' earnings, revenue and cash flow.

A Different Perspective

While Ondas Holdings shareholders are down 68% for the year, the market itself is up 25%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 37% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Ondas Holdings better, we need to consider many other factors. Even so, be aware that Ondas Holdings is showing 5 warning signs in our investment analysis , and 3 of those shouldn't be ignored...

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 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.