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Shareholders Have Faith in Loss-making Expro Group Holdings (NYSE:XPRO) as Stock Climbs 4.0% in Past Week, Taking One-year Gain to 27%

Simply Wall St ·  Feb 2, 2023 07:18

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Expro Group Holdings N.V. (NYSE:XPRO) share price is 27% higher than it was a year ago, much better than the market decline of around 9.1% (not including dividends) in the same period. So that should have shareholders smiling. We'll need to follow Expro Group Holdings 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.

See our latest analysis for Expro Group Holdings

Expro Group Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

Expro Group Holdings grew its revenue by 79% last year. That's well above most other pre-profit companies. The solid 27% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Expro Group Holdings. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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NYSE:XPRO Earnings and Revenue Growth February 2nd 2023

If you are thinking of buying or selling Expro Group Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Expro Group Holdings shareholders have gained 27% over the last year. And the share price momentum remains respectable, with a gain of 5.6% in the last three months. This suggests the company is continuing to win over new investors. If you would like to research Expro Group Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

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 US 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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