Yahoo Finance Introducing ZhongAn Online P & C Insurance (HKG:6060), A Stock That Climbed 11% In The Last Year
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the ZhongAn Online P & C Insurance Co., Ltd. (HKG:6060) share price is up 11% in the last year, clearly besting the market return of around -14% (not including dividends). That's a solid performance by our standards! ZhongAn Online P & C Insurance hasn't been listed for long, so it's still not clear if it is a long term winner.
Check out our latest analysis for ZhongAn Online P & C Insurance
ZhongAn Online P & C Insurance isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong 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.
Over the last twelve months, ZhongAn Online P & C Insurance's revenue grew by 69%. That's well above most other pre-profit companies. The solid 11% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate ZhongAn Online P & C Insurance in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think ZhongAn Online P & C Insurance will earn in the future (free profit forecasts).
A Different Perspective
ZhongAn Online P & C Insurance shareholders should be happy with the total gain of 11% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 15% 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 ZhongAn Online P & C Insurance better, we need to consider many other factors. For instance, we've identified 1 warning sign for ZhongAn Online P & C Insurance that you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
