Why iRobot Stock Gained 59% Last Year
Shares of iRobot (NASDAQ: IRBT) gained 58.6% in 2020, according to data provided by S&P Global Market Intelligence. But all the gains were essentially realized during just a three-month span: April through June. Over the past six months, the stock has traded sideways. Here's why it was a winner during that short period, and why it's been losing to the market the rest of the time.
iRobot makes autonomous floor-cleaning robots like the Roomba and Braava, and sales went crazy in the second quarter of 2020. Revenue came in at $280 million, which was only up 8% year over year. But the company had expected sales of less than $193 million. This substantial surprise provided fuel to send the stock higher.
Image source: Getty Images.
Source Fool.com
