The 11% return this week takes Duos Technologies Group's (NASDAQ:DUOT) shareholders one-year gains to 188%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Duos Technologies Group, Inc. (NASDAQ:DUOT) share price has soared 188% in the last 1 year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 70% gain in the last three months. Looking back further, the stock price is 107% higher than it was three years ago.

Since the stock has added US$9.0m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

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Duos Technologies Group 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Duos Technologies Group grew its revenue by 89% last year. That's stonking growth even when compared to other loss-making stocks. And the share price has responded, gaining 188% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think Duos Technologies Group will earn in the future (free profit forecasts).

A Different Perspective

It's nice to see that Duos Technologies Group shareholders have received a total shareholder return of 188% over the last year. That gain is better than the annual TSR over five years, which is 12%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Duos Technologies Group better, we need to consider many other factors. To that end, you should learn about the 6 warning signs we've spotted with Duos Technologies Group (including 2 which are a bit unpleasant) .

But note: Duos Technologies Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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.