Wireless Telecom Group (NYSEMKT:WTT) Shareholders Booked A 90% Gain In The Last Year

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Wireless Telecom Group, Inc. (NYSEMKT:WTT) share price is up 90% in the last year, clearly besting the market return of around 32% (not including dividends). That's a solid performance by our standards! Having said that, the longer term returns aren't so impressive, with stock gaining just 9.8% in three years.

See our latest analysis for Wireless Telecom Group

Because Wireless Telecom Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Wireless Telecom Group actually shrunk its revenue over the last year, with a reduction of 13%. The stock is up 90% 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.

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

Take a more thorough look at Wireless Telecom Group's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Wireless Telecom Group has rewarded shareholders with a total shareholder return of 90% in the last twelve months. That's better than the annualised return of 12% over half a decade, implying that the company is doing better recently. 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 Wireless Telecom Group better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Wireless Telecom Group you should be aware of.

We will like Wireless Telecom Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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