Investors ignore increasing losses at QuinStreet (NASDAQ:QNST) as stock jumps 9.2% this past week

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the QuinStreet, Inc. (NASDAQ:QNST) share price has soared 133% in the last 1 year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 52% gain in the last three months. The longer term returns have not been as good, with the stock price only 1.3% higher than it was three years ago.

Since the stock has added US$87m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for QuinStreet

Because QuinStreet 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year QuinStreet saw its revenue shrink by 4.4%. So we would not have expected the share price to rise 133%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling QuinStreet stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's good to see that QuinStreet has rewarded shareholders with a total shareholder return of 133% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 4% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

QuinStreet is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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.