Advertisement
New Zealand markets open in 10 hours
  • NZX 50

    11,946.43
    +143.15 (+1.21%)
     
  • NZD/USD

    0.5961
    +0.0024 (+0.41%)
     
  • NZD/EUR

    0.5559
    +0.0013 (+0.23%)
     
  • ALL ORDS

    7,937.50
    -0.40 (-0.01%)
     
  • ASX 200

    7,683.00
    -0.50 (-0.01%)
     
  • OIL

    82.94
    +0.13 (+0.16%)
     
  • GOLD

    2,341.50
    +3.10 (+0.13%)
     
  • NASDAQ

    17,526.80
    +55.33 (+0.32%)
     
  • FTSE

    8,095.35
    +54.97 (+0.68%)
     
  • Dow Jones

    38,460.92
    -42.77 (-0.11%)
     
  • DAX

    17,970.40
    -118.30 (-0.65%)
     
  • Hang Seng

    17,284.54
    +83.27 (+0.48%)
     
  • NIKKEI 225

    37,628.48
    -831.60 (-2.16%)
     
  • NZD/JPY

    92.6980
    +0.5830 (+0.63%)
     

Those who invested in Mondee Holdings (NASDAQ:MOND) a year ago are up 12%

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the Mondee Holdings, Inc. (NASDAQ:MOND) share price is 12% higher than it was a year ago, much better than the market decline of around 9.6% (not including dividends) in the same period. That's a solid performance by our standards! Mondee Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

View our latest analysis for Mondee Holdings

Because Mondee Holdings 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

ADVERTISEMENT

In the last year Mondee Holdings saw its revenue grow by 77%. That's stonking growth even when compared to other loss-making stocks. While the share price gain of 12% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Mondee Holdings. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

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

earnings-and-revenue-growth
earnings-and-revenue-growth

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. You can see what analysts are predicting for Mondee Holdings in this interactive graph of future profit estimates.

A Different Perspective

Mondee Holdings shareholders should be happy with the total gain of 12% over the last twelve months. And the share price momentum remains respectable, with a gain of 24% in the last three months. This suggests the company is continuing to win over new investors. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Mondee Holdings that you should be aware of before investing here.

Mondee Holdings 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 US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here