Announcing: Zovio (NASDAQ:ZVO) Stock Increased An Energizing 253% In The Last Year

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. For example, the Zovio Inc (NASDAQ:ZVO) share price had more than doubled in just one year - up 253%. Also pleasing for shareholders was the 45% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 21% in 90 days). On the other hand, longer term shareholders have had a tougher run, with the stock falling 31% in three years.

See our latest analysis for Zovio

Zovio 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 expect 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 Zovio saw its revenue shrink by 3.8%. We're a little surprised to see the share price pop 253% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

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

It's good to see that Zovio has rewarded shareholders with a total shareholder return of 253% in the last twelve months. That certainly beats the loss of about 3% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. Take risks, for example - Zovio has 2 warning signs we think you should be aware of.

We will like Zovio 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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