Yahoo Finance FTC Solar (NASDAQ:FTCI) rallies 29% this week, taking one-year gains to 15%
If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the FTC Solar, Inc. (NASDAQ:FTCI) share price is up 15% in the last 1 year, clearly besting the market return of around 2.0% (not including dividends). That's a solid performance by our standards! We'll need to follow FTC Solar 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.
Check out our latest analysis for FTC Solar
FTC Solar 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. 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 year FTC Solar saw its revenue shrink by 55%. Despite the lack of revenue growth, the stock has returned a solid 15% the last twelve months. To us that means that there 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 image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. This free report showing analyst forecasts should help you form a view on FTC Solar
A Different Perspective
FTC Solar shareholders should be happy with the total gain of 15% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 22% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand FTC Solar better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for FTC Solar you should know about.
FTC Solar is not the only stock that insiders are buying. 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 American 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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