Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Tilray Brands, Inc. (NASDAQ:TLRY) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 53%. Tilray Brands may have better days ahead, of course; we’ve only looked at a one year period. Furthermore, it’s down 20% in about a quarter. That’s not much fun for holders.
While the stock has risen 7.9% in the past week but long term shareholders are still in the red, let’s see what the fundamentals can tell us.
View our latest analysis for Tilray Brands
Given that Tilray Brands didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Tilray Brands grew its revenue by 2.2% over the last year. That’s not a very high growth rate considering it doesn’t make profits. It’s likely this muted growth has contributed to the share price decline of 53% in the last year. We’d want to see evidence that future revenue growth will be stronger before getting too interested. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for a fundamental improvements before buying, but now could be a good time for some research.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Tilray Brands is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think Tilray Brands will earn in the future (free analyst consensus estimates)
A Different Perspective
We doubt Tilray Brands shareholders are happy with the loss of 53% over twelve months. That falls short of the market, which lost 13%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. With the stock down 20% over the last three months, the market doesn’t seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we’d remain pretty wary until we see some strong business performance. 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. Case in point: We’ve spotted 2 warning signs for Tilray Brands you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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.
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