Yahoo Finance As Cellebrite DI (NASDAQ:CLBT) spikes 10% this past week, investors may now be noticing the company's one-year earnings growth
Cellebrite DI Ltd. (NASDAQ:CLBT) shareholders should be happy to see the share price up 10% in the last week. But that's not enough to compensate for the decline over the last twelve months. Specifically, the stock price slipped by 57% in that time. Some might say the recent bounce is to be expected after such a bad drop. Of course, it could be that the fall was overdone.
While the last year has been tough for Cellebrite DI shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.
See our latest analysis for Cellebrite DI
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
The last year saw Cellebrite DI's EPS really take off. While the business is unlikely to sustain such a high growth rate for long, it's great to see. As a result, we're surprised to see the weak share price. Some different data might shed some more light on the situation.
Cellebrite DI's revenue is actually up 16% over the last year. Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock.
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 know that Cellebrite DI has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Cellebrite DI stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
We doubt Cellebrite DI shareholders are happy with the loss of 57% over twelve months. That falls short of the market, which lost 21%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 24% 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 Cellebrite DI better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Cellebrite DI .
Of course Cellebrite DI may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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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