CastleNet Technology's(GTSM:8059) Share Price Is Down 33% Over The Past Year.

The simplest way to benefit from a rising market is to buy an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. That downside risk was realized by CastleNet Technology Inc. (GTSM:8059) shareholders over the last year, as the share price declined 33%. That falls noticeably short of the market return of around 31%. Longer term investors have fared much better, since the share price is up 18% in three years. Shareholders have had an even rougher run lately, with the share price down 15% in the last 90 days.

See our latest analysis for CastleNet Technology

Because CastleNet Technology 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In just one year CastleNet Technology saw its revenue fall by 24%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 33% in that time. What would you expect when revenue is falling, and it doesn't make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at CastleNet Technology's financial health with this free report on its balance sheet.

A Different Perspective

Investors in CastleNet Technology had a tough year, with a total loss of 33%, against a market gain of about 31%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 0.9% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. Case in point: We've spotted 2 warning signs for CastleNet Technology you should be aware of, and 1 of them doesn't sit too well with us.

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 TW 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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