Loss-making PopReach (CVE:POPR) has seen earnings and shareholder returns follow the same downward trajectory over past -36%

The simplest way to benefit from a rising market is to buy an index fund. But if you buy individual stocks, you can do both better or worse than that. For example, the PopReach Corporation (CVE:POPR) share price is down 36% in the last year. That falls noticeably short of the market decline of around 3.2%. We wouldn't rush to judgement on PopReach because we don't have a long term history to look at.

The recent uptick of 19% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Check out our latest analysis for PopReach

Because PopReach 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last twelve months, PopReach increased its revenue by 165%. That's a strong result which is better than most other loss making companies. The share price drop of 36% over twelve months would be considered disappointing by many, so you might argue the company is getting little credit for its impressive revenue growth. Prima facie, revenue growth like that should be a good thing, so it's worth checking whether losses have stabilized.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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. This free report showing analyst forecasts should help you form a view on PopReach

A Different Perspective

Given that the market gained 3.2% in the last year, PopReach shareholders might be miffed that they lost 36%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's great to see a nice little 14% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand PopReach better, we need to consider many other factors. Even so, be aware that PopReach is showing 4 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

PopReach 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 Canadian 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.