Yahoo Finance Volatility 101: Should engage:BDR (ASX:EN1) Shares Have Dropped 20%?
It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Unfortunately the engage:BDR Limited (ASX:EN1) share price slid 20% over twelve months. That's well bellow the market return of 24%. Because engage:BDR hasn't been listed for many years, the market is still learning about how the business performs. In the last ninety days we've seen the share price slide 31%.
View our latest analysis for engage:BDR
Because engage:BDR made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In just one year engage:BDR saw its revenue fall by 1.2%. That's not what investors generally want to see. The stock price has languished lately, falling 20% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling engage:BDR stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Given that the market gained 24% in the last year, engage:BDR shareholders might be miffed that they lost 20%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Notably, the loss over the last year isn't as bad as the 31% drop in the last three months. So it seems like some holders have been dumping the stock of late - and that's not bullish. It's always interesting to track share price performance over the longer term. But to understand engage:BDR better, we need to consider many other factors. For instance, we've identified 6 warning signs for engage:BDR (4 are concerning) that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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.
