Further weakness as Maxeon Solar Technologies (NASDAQ:MAXN) drops 27% this week, taking one-year losses to 35%

It's easy to match the overall market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Investors in Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) have tasted that bitter downside in the last year, as the share price dropped 35%. That contrasts poorly with the market decline of 9.4%. Maxeon Solar Technologies may have better days ahead, of course; we've only looked at a one year period. On top of that, the share price is down 27% in the last week.

With the stock having lost 27% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Maxeon Solar Technologies

Maxeon Solar Technologies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Maxeon Solar Technologies' revenue didn't grow at all in the last year. In fact, it fell 7.4%. That's not what investors generally want to see. Shareholders have seen the share price drop 35% in that time. What would you expect when revenue is falling, and it doesn't make a profit? It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Maxeon Solar Technologies stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We doubt Maxeon Solar Technologies shareholders are happy with the loss of 35% over twelve months. That falls short of the market, which lost 9.4%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 5.1%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. 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. Even so, be aware that Maxeon Solar Technologies is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.

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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.