Yahoo Finance Investors Who Bought Infront (OB:INFRNT) Shares A Year Ago Are Now Down 13%
The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in Infront ASA (OB:INFRNT) have tasted that bitter downside in the last year, as the share price dropped 13%. That falls noticeably short of the market return of around -0.8%. Infront hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The good news is that the stock is up 3.7% in the last week.
Check out our latest analysis for Infront
Given that Infront 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year Infront saw its revenue grow by 29%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 13%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Infront shareholders are down 13% for the year, even worse than the market loss of 0.8%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 8.7% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. Before spending more time on Infront it might be wise to click here to see if insiders have been buying or selling shares.
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 NO exchanges.
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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. Thank you for reading.