Shareholders have faith in loss-making Clear Channel Outdoor Holdings (NYSE:CCO) as stock climbs 4.3% in past week, taking one-year gain to 182%

By
Simply Wall St
Published
October 03, 2021
NYSE:CCO
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) share price had more than doubled in just one year - up 182%. It's also good to see the share price up 13% over the last quarter. Unfortunately the longer term returns are not so good, with the stock falling 53% in the last three years.

Since it's been a strong week for Clear Channel Outdoor Holdings shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Clear Channel Outdoor Holdings

Given that Clear Channel Outdoor Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

In the last year Clear Channel Outdoor Holdings saw its revenue shrink by 16%. We're a little surprised to see the share price pop 182% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. 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).

earnings-and-revenue-growth
NYSE:CCO Earnings and Revenue Growth October 3rd 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Clear Channel Outdoor Holdings has rewarded shareholders with a total shareholder return of 182% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. For instance, we've identified 2 warning signs for Clear Channel Outdoor Holdings (1 shouldn't be ignored) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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.

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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.