Introducing Opera (NASDAQ:OPRA), A Stock That Climbed 49% In The Last Year

Opera Limited (NASDAQ:OPRA) shareholders might be concerned after seeing the share price drop 11% in the last week. But that doesn't change the fact that the returns over the last year have been pleasing. Looking at the full year, the company has easily bested an index fund by gaining 49%.

See our latest analysis for Opera

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over the last twelve months, Opera actually shrank its EPS by 43%.

This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

Opera's revenue actually dropped 48% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

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 Opera has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Opera's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Opera boasts a total shareholder return of 49% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 42% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Opera better, we need to consider many other factors. For example, we've discovered 2 warning signs for Opera that you should be aware of before investing here.

Of course Opera 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 US exchanges.

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This article by Simply Wall St is general in nature. 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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