The Dogness (International) (NASDAQ:DOGZ) Share Price Is Up 89% And Shareholders Are Holding On

The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Dogness (International) Corporation (NASDAQ:DOGZ) share price is up 89% in the last year, clearly besting the market return of around 27% (not including dividends). So that should have shareholders smiling. Zooming out, the stock is actually down 53% in the last three years.

Check out our latest analysis for Dogness (International)

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Dogness (International) saw its earnings per share (EPS) drop below zero. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. We might get a clue to explain the share price move by looking to other metrics.

Unfortunately Dogness (International)'s fell 27% over twelve months. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

We're pleased to report that Dogness (International) rewarded shareholders with a total shareholder return of 89% over the last year. What is absolutely clear is that is far preferable to the dismal 15% average annual loss suffered over the last three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Dogness (International) (of which 1 is a bit unpleasant!) you should know about.

We will like Dogness (International) better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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