The last three months have been tough on Orbital Energy Group, Inc. (NASDAQ:OEG) shareholders, who have seen the share price decline a rather worrying 61%. But over the last year the share price has taken off like one of Elon Musk’s rockets. In that time, shareholders have had the pleasure of a 352% boost to the share price. Arguably, the recent fall is to be expected after such a strong rise. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).
Because Orbital Energy Group 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. Shareholders of unprofitable companies usually expect strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Orbital Energy Group grew its revenue by 64% last year. That’s a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 352% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at Orbital Energy Group’s financial health with this free report on its balance sheet.
A Different Perspective
It’s good to see that Orbital Energy Group has rewarded shareholders with a total shareholder return of 352% in the last twelve months. That certainly beats the loss of about 8% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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 example, we’ve discovered 2 warning signs for Orbital Energy Group (1 can’t be ignored!) that you should be aware of before investing here.
Of course Orbital Energy Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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. 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.
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