Introducing Zinc8 Energy Solutions (CSE:ZAIR), A Stock That Climbed 50% In The Last Year

Some Zinc8 Energy Solutions Inc. (CSE:ZAIR) shareholders are probably rather concerned to see the share price fall 39% over the last three months. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 50% in that time.

Check out our latest analysis for Zinc8 Energy Solutions

Given that Zinc8 Energy Solutions didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

Zinc8 Energy Solutions grew its revenue by 50% last year. That's a head and shoulders above most loss-making companies. The solid 50% 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 Zinc8 Energy Solutions. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at Zinc8 Energy Solutions' financial health with this free report on its balance sheet.

A Different Perspective

Zinc8 Energy Solutions shareholders should be happy with the total gain of 50% over the last twelve months. Unfortunately the share price is down 39% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. 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 4 warning signs for Zinc8 Energy Solutions (1 is concerning!) that you should be aware of before investing here.

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 CA exchanges.

If you’re looking to trade a wide range of investments, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.