Stock Analysis

Announcing: Liberty TripAdvisor Holdings (NASDAQ:LTRP.A) Stock Soared An Exciting 449% In The Last Year

OTCPK:LTRP.A
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While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you find (and hold) a big winner, you can markedly improve your finances. For example, Liberty TripAdvisor Holdings, Inc. (NASDAQ:LTRP.A) has generated a beautiful 449% return in just a single year. Also pleasing for shareholders was the 70% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. On the other hand, longer term shareholders have had a tougher run, with the stock falling 43% in three years.

View our latest analysis for Liberty TripAdvisor Holdings

Liberty TripAdvisor Holdings 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Liberty TripAdvisor Holdings saw its revenue shrink by 61%. So it's very confusing to see that the share price gained a whopping 449%. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. While this gain looks like speculative buying to us, sometimes speculation pays off.

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

earnings-and-revenue-growth
NasdaqGS:LTRP.A Earnings and Revenue Growth March 12th 2021

Take a more thorough look at Liberty TripAdvisor Holdings' financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Liberty TripAdvisor Holdings has rewarded shareholders with a total shareholder return of 449% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 11% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. Even so, be aware that Liberty TripAdvisor Holdings is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

We will like Liberty TripAdvisor Holdings 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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