Cushman & Wakefield (NYSE:CWK) shareholder returns have been notable, earning 84% in 1 year

Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. To wit, the Cushman & Wakefield plc (NYSE:CWK) share price is 84% higher than it was a year ago, much better than the market return of around 40% (not including dividends) in the same period. That's a solid performance by our standards! On the other hand, longer term shareholders have had a tougher run, with the stock falling 25% in three years.

The past week has proven to be lucrative for Cushman & Wakefield investors, so let's see if fundamentals drove the company's one-year performance.

View our latest analysis for Cushman & Wakefield

While Cushman & Wakefield made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last year Cushman & Wakefield saw its revenue shrink by 5.2%. The stock is up 84% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We know that Cushman & Wakefield has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Cushman & Wakefield in this interactive graph of future profit estimates.

A Different Perspective

It's nice to see that Cushman & Wakefield shareholders have received a total shareholder return of 84% over the last year. That certainly beats the loss of about 5% per year over the last half decade. 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. Take risks, for example - Cushman & Wakefield has 2 warning signs (and 1 which can't be ignored) we think you should know about.

Of course Cushman & Wakefield 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 American exchanges.

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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.