It hasn't been the best quarter for Transcontinental Realty Investors, Inc. (NYSE:TCI) shareholders, since the share price has fallen 24% in that time. But at least the stock is up over the last five years. In that time, it is up 72%, which isn't bad, but is below the market return of 86%.
Transcontinental Realty Investors isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years Transcontinental Realty Investors saw its revenue shrink by 9.7% per year. Even though revenue hasn't increased, the stock actually gained 11%, per year, during the same period. To us that suggests that there probably isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Transcontinental Realty Investors stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Investors in Transcontinental Realty Investors had a tough year, with a total loss of 29%, against a market gain of about 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 11%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. Even so, be aware that Transcontinental Realty Investors is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
We will like Transcontinental Realty Investors better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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.
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