If You Had Bought EHang Holdings (NASDAQ:EH) Stock A Year Ago, You Could Pocket A 523% Gain Today

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you find (and hold) a big winner, you can markedly improve your finances. For example, the EHang Holdings Limited (NASDAQ:EH) share price rocketed moonwards 523% in just one year. Shareholders are also celebrating an even better 760% rise, over the last three months. We'll need to follow EHang Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

We love happy stories like this one. The company should be really proud of that performance!

View our latest analysis for EHang Holdings

Because EHang Holdings 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

EHang Holdings grew its revenue by 131% last year. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 523% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

EHang Holdings boasts a total shareholder return of 523% for the last year. And the share price momentum remains respectable, with a gain of 760% in the last three months. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand EHang Holdings better, we need to consider many other factors. Even so, be aware that EHang Holdings is showing 2 warning signs in our investment analysis , you should know about...

Of course EHang Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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