Did Business Growth Power Zinc8 Energy Solutions' (CSE:ZAIR) Share Price Gain of 188%?

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Zinc8 Energy Solutions Inc. (CSE:ZAIR). Its share price is already up an impressive 188% in the last twelve months. Better yet, the share price has gained 213% in the last quarter. We'll need to follow Zinc8 Energy Solutions for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Zinc8 Energy Solutions

Zinc8 Energy Solutions isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

Zinc8 Energy Solutions grew its revenue by 288% last year. That's well above most other pre-profit companies. And the share price has responded, gaining 188% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Zinc8 Energy Solutions' earnings, revenue and cash flow.

A Different Perspective

Zinc8 Energy Solutions shareholders should be happy with the total gain of 188% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 213% in that time. This suggests the company is continuing to win over new investors. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 6 warning signs for Zinc8 Energy Solutions (2 can't be ignored!) that you should be aware of before investing here.

Zinc8 Energy Solutions is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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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