These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Swicorp Wabel Reit Fund (TADAWUL:4345) share price is up 48% in the last year, clearly besting the market return of around 18% (not including dividends). So that should have shareholders smiling. We'll need to follow Swicorp Wabel Reit Fund for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Because Swicorp Wabel Reit Fund 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Swicorp Wabel Reit Fund actually shrunk its revenue over the last year, with a reduction of 41%. Despite the lack of revenue growth, the stock has returned a solid 48% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Swicorp Wabel Reit Fund shareholders should be happy with the total gain of 48% over the last twelve months, including dividends. And the share price momentum remains respectable, with a gain of 27% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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 instance, we've identified 2 warning signs for Swicorp Wabel Reit Fund (1 is a bit unpleasant) that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SA exchanges.
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