Introducing Penn Virginia (NASDAQ:PVAC), The Stock That Zoomed 111% 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 Penn Virginia Corporation (NASDAQ:PVAC) share price has soared 111% return in just a single year. In more good news, the share price has risen 2.8% in thirty days. In contrast, the longer term returns are negative, since the share price is 73% lower than it was three years ago.

Check out our latest analysis for Penn Virginia

Because Penn Virginia 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.

Penn Virginia actually shrunk its revenue over the last year, with a reduction of 41%. We're a little surprised to see the share price pop 111% 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 how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

It's nice to see that Penn Virginia shareholders have gained 111% (in total) over the last year. That certainly beats the loss of about 20% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. 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 1 warning sign for Penn Virginia you should be aware of.

Of course Penn Virginia 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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