Even the best stock pickers will make plenty of bad investments. Anyone who held Uxin Limited (NASDAQ:UXIN) over the last year knows what a loser feels like. The share price is down a hefty 70% in that time. Because Uxin hasn't been listed for many years, the market is still learning about how the business performs. Shareholders have had an even rougher run lately, with the share price down 34% in the last 90 days.
View our latest analysis for Uxin
Because Uxin 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last twelve months, Uxin increased its revenue by 141%. That's a strong result which is better than most other loss making companies. In contrast the share price is down 70% over twelve months. Yes, the market can be a fickle mistress. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Uxin's financial health with this free report on its balance sheet.
A Different Perspective
While Uxin shareholders are down 70% for the year, the market itself is up 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 34% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Uxin better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Uxin (including 1 which is is significant).
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 US exchanges.
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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