Even though Clear Channel Outdoor Holdings (NYSE:CCO) has lost US$89m market cap in last 7 days, shareholders are still up 34% over 5 years

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) shareholders might be concerned after seeing the share price drop 12% in the last week. But at least the stock is up over the last five years. In that time, it is up 34%, which isn't bad, but is below the market return of 93%. While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 16% drop, in the last year.

Since the long term performance has been good but there's been a recent pullback of 12%, let's check if the fundamentals match the share price.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Clear Channel Outdoor 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 hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years Clear Channel Outdoor Holdings saw its revenue shrink by 8.5% per year. The falling revenue is arguably somewhat reflected in the lacklustre return of 6% per year over that time. That's pretty decent given the top line decline, and lack of profits. Of course, a closer look at the bottom line - and any available analyst forecasts - could reveal an opportunity (if they point to future growth).

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think Clear Channel Outdoor Holdings will earn in the future (free profit forecasts).

A Different Perspective

Clear Channel Outdoor Holdings shareholders are down 16% for the year, but the market itself is up 16%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 6% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Clear Channel Outdoor Holdings better, we need to consider many other factors. For instance, we've identified 1 warning sign for Clear Channel Outdoor Holdings that you should be aware of.

Clear Channel Outdoor Holdings is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.