Dogness (International) (NASDAQ:DOGZ) pulls back 11% this week, but still delivers shareholders enviable 330% return over 1 year

Some Dogness (International) Corporation (NASDAQ:DOGZ) shareholders are probably rather concerned to see the share price fall 52% over the last three months. But that isn't a problem when you consider how the share price has soared over the last year. In fact, it is up 330% in that time. So we wouldn't blame sellers for taking some profits. Only time will tell if there is still too much optimism currently reflected in the share price.

While the stock has fallen 11% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

Check out our latest analysis for Dogness (International)

Dogness (International) isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Dogness (International) saw its revenue shrink by 16%. This is in stark contrast to the splendorous stock price, which has rocketed 330% since this time a year ago. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. While this gain looks like speculative buying to us, sometimes speculation pays off.

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

This free interactive report on Dogness (International)'s balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Dogness (International) shareholders have received a total shareholder return of 330% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 3% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Dogness (International) better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Dogness (International) (including 2 which don't sit too well with us) .

But note: Dogness (International) may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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