Investors can approximate the average market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in American Finance Trust, Inc. (NASDAQ:AFIN) have tasted that bitter downside in the last year, as the share price dropped 45%. That’s well below the market return of 19%. Because American Finance Trust hasn’t been listed for many years, the market is still learning about how the business performs. The falls have accelerated recently, with the share price down 25% in the last three months.
American Finance Trust 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. Generally speaking, companies without profits are expected to grow revenue every year,