Twin Vee Powercats (NASDAQ:VEEE) spikes 94% this week, taking one-year gains to 82%
Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Twin Vee Powercats Co. (NASDAQ:VEEE) share price is up 82% in the last 1 year, clearly besting the market decline of around 9.6% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Twin Vee Powercats for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
View our latest analysis for Twin Vee Powercats
Twin Vee Powercats wasn't profitable in the last twelve months, 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year Twin Vee Powercats saw its revenue grow by 80%. That's stonking growth even when compared to other loss-making stocks. While the share price gain of 82% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Twin Vee Powercats. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Twin Vee Powercats' financial health with this free report on its balance sheet.
A Different Perspective
Twin Vee Powercats shareholders should be happy with the total gain of 82% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 134% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Twin Vee Powercats better, we need to consider many other factors. Even so, be aware that Twin Vee Powercats is showing 2 warning signs in our investment analysis , and 1 of those is significant...
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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