Yahoo Finance Loss-making Angi (NASDAQ:ANGI) sheds a further US$392m, taking total shareholder losses to 44% over 3 years
Many investors define successful investing as beating the market average over the long term. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long term Angi Inc. (NASDAQ:ANGI) shareholders have had that experience, with the share price dropping 44% in three years, versus a market return of about 88%. The more recent news is of little comfort, with the share price down 28% in a year. Shareholders have had an even rougher run lately, with the share price down 31% in the last 90 days.
If the past week is anything to go by, investor sentiment for Angi isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
Check out our latest analysis for Angi
Angi 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over three years, Angi grew revenue at 13% per year. That's a fairly respectable growth rate. Shareholders have seen the share price fall at 13% per year, for three years. This implies the market had higher expectations of Angi. However, that's in the past now, and it's the future is more important - and the future looks brighter (based on revenue, anyway).
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Angi is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Angi stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
Angi shareholders are down 28% for the year, but the broader market is up 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 13% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. It's always interesting to track share price performance over the longer term. But to understand Angi better, we need to consider many other factors. For example, we've discovered 1 warning sign for Angi that you should be aware of before investing here.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
