Covetrus (NASDAQ:CVET) Shareholders Have Enjoyed An Impressive 106% Share Price Gain

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Covetrus, Inc. (NASDAQ:CVET) share price had more than doubled in just one year - up 106%. It's also good to see the share price up 30% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 15% in 90 days). We'll need to follow Covetrus for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for Covetrus

Covetrus isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Covetrus' revenue grew by 9.1%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 106%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just revenue growth.

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 Covetrus' financial health with this free report on its balance sheet.

A Different Perspective

Covetrus boasts a total shareholder return of 106% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 30% in that time. 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 Covetrus better, we need to consider many other factors. Take risks, for example - Covetrus has 2 warning signs we think you should be aware of.

But note: Covetrus 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 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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