One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at Zhejiang Tuna Environmental Science & TechnologyCo.,Ltd. (SHSE:603177), which is up 54%, over three years, soundly beating the market decline of 24% (not including dividends).
Since it's been a strong week for Zhejiang Tuna Environmental Science & TechnologyCo.Ltd shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for Zhejiang Tuna Environmental Science & TechnologyCo.Ltd
Zhejiang Tuna Environmental Science & TechnologyCo.Ltd 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last 3 years Zhejiang Tuna Environmental Science & TechnologyCo.Ltd saw its revenue grow at 20% per year. That's much better than most loss-making companies. The share price rise of 15% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. So now might be the perfect time to put Zhejiang Tuna Environmental Science & TechnologyCo.Ltd on your radar. A window of opportunity may reveal itself with time, if the business can trend to profitability.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Zhejiang Tuna Environmental Science & TechnologyCo.Ltd's financial health with this free report on its balance sheet.
A Different Perspective
We regret to report that Zhejiang Tuna Environmental Science & TechnologyCo.Ltd shareholders are down 16% for the year. Unfortunately, that's worse than the broader market decline of 10.0%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 8% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Zhejiang Tuna Environmental Science & TechnologyCo.Ltd that you should be aware of.
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 Chinese 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.