Yahoo Finance The one-year earnings decline has likely contributed toSarcos Technology and Robotics' (NASDAQ:STRC) shareholders losses of 76% over that period
The art and science of stock market investing requires a tolerance for losing money on some of the shares you buy. But it should be a priority to avoid stomach churning catastrophes, wherever possible. So spare a thought for the long term shareholders of Sarcos Technology and Robotics Corporation (NASDAQ:STRC); the share price is down a whopping 76% in the last twelve months. That'd be a striking reminder about the importance of diversification. Because Sarcos Technology and Robotics hasn't been listed for many years, the market is still learning about how the business performs. Even worse, it's down 29% in about a month, which isn't fun at all.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
Check out our latest analysis for Sarcos Technology and Robotics
Sarcos Technology and Robotics wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Sarcos Technology and Robotics' revenue didn't grow at all in the last year. In fact, it fell 25%. That looks pretty grim, at a glance. The share price fall of 76% in a year tells the story. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Sarcos Technology and Robotics in this interactive graph of future profit estimates.
A Different Perspective
We doubt Sarcos Technology and Robotics shareholders are happy with the loss of 76% over twelve months. That falls short of the market, which lost 22%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 14%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Sarcos Technology and Robotics better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Sarcos Technology and Robotics , and understanding them should be part of your investment process.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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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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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