Callon Petroleum Company (NYSE:CPE) shareholders might be concerned after seeing the share price drop 13% in the last week. But that doesn’t change the fact that the returns over the last year have been spectacular. Few could complain about the impressive 589% rise, throughout the period. So we wouldn’t blame sellers for taking some profits. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).
We love happy stories like this one. The company should be really proud of that performance!
Check out our latest analysis for Callon Petroleum
Callon Petroleum isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Callon Petroleum grew its revenue by 54% last year. That’s a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 589% as previously highlighted. Despite the strong growth, it’s certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
It’s good to see that Callon Petroleum has rewarded shareholders with a total shareholder return of 589% in the last twelve months. Notably the five-year annualised TSR loss of 10% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It’s always interesting to track share price performance over the longer term. But to understand Callon Petroleum better, we need to consider many other factors. For example, we’ve discovered 3 warning signs for Callon Petroleum that you should be aware of before investing here.
But note: Callon Petroleum 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 US exchanges.
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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. 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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