Despite delivering investors losses of 56% over the past 1 year, Hayward Holdings (NYSE:HAYW) has been growing its earnings

The nature of investing is that you gain some and lose some. Anyone who has held Hayward Holdings, Inc. (NYSE:HAYW) over the past year knows how a loser feels. The stock price has fallen a whopping 56% during that time. Hayward Holdings has not been public for very long so although we are wary of recent listings which have performed poorly, we could still prove our worth over time. Shareholders have had an even rougher run of late, with the stock price falling 31% over the past 90 days.
While the past year has been rough for Hayward Holdings shareholders, the past week has shown some encouraging signs. So let's look at longer-term fundamentals and see if they were the driver of negative returns.
Check out our latest analysis for Hayward Holdings
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While markets are a powerful pricing mechanism, stock prices reflect investor sentiment and not just underlying business performance. An imperfect but simple way to study how a company's market perception has changed is to compare the change in earnings per share (EPS) to stock price movement.
Hayward Holdings' earnings per share have soared over the last year. Although the growth rate is not sustainable, it is still very positive. Therefore, we are surprised that the share price has fallen. Some other data might shed a little more light on the situation.
Hayward Holdings has managed to grow revenue over the past year, which is usually very positive. With fundamental metrics not readily explaining the stock price decline, an opportunity could arise if the market has overreacted.
The chart below shows how revenue and earnings have evolved over time (click on the image to find out the exact values).
Profit and Revenue Growth
Hayward Holdings is a well-known stock with ample analyst coverage, suggesting some insight into future growth. We therefore recommend checking out this free report of consensus forecasts
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A different perspective
Hayward Holdings shareholders are down 56% for the year, which is even worse than the market's 17% drop. That's undoubtedly a disappointment, but the stock might have done better in a stronger market. The share price decline has continued, down 31% over the past three months, indicating a lack of enthusiasm among investors. Given this stock's relatively short history, we'd remain fairly cautious until we see strong business performance. While it's worth considering the various effects that market conditions can have on the stock price, there are other factors that are even more important. For example, we spotted 1 warning sign for Hayward Holdings that you should be aware of before investing here.
We'll like Hayward Holdings better when we see some big insider buys. While we wait, check out this free list of growing companies with sizeable insider buys.
Please note that the market returns reported in this article reflect the market-weighted average returns of stocks currently traded on US exchanges.
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This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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