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Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. For example, the Twintek Investment Holdings Limited (HKG:6182) share price is up 59% in the last year, clearly besting the market return of around -8.6% (not including dividends). That's a solid performance by our standards! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.
Check out our latest analysis for Twintek Investment Holdings
Given that Twintek Investment Holdings only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
In the last year Twintek Investment Holdings saw its revenue shrink by 18%. Despite the lack of revenue growth, the stock has returned a solid 59% the last twelve months. 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).
If you are thinking of buying or selling Twintek Investment Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Twintek Investment Holdings shareholders have gained 59% over the last year. And the share price momentum remains respectable, with a gain of 15% in the last three months. This suggests the company is continuing to win over new investors. You could get a better understanding of Twintek Investment Holdings's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
But note: Twintek Investment Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.