Luby's, Inc. (NYSE:LUB) has rebounded strongly over the last week, with the share price soaring 102%. But that is little comfort to those holding over the last half decade, sitting on a big loss. In that time the share price has delivered a rude shock to holders, who find themselves down 56% after a long stretch. So we're hesitant to put much weight behind the short term increase. Of course, this could be the start of a turnaround.

Check out our latest analysis for Luby's

Luby's 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over half a decade Luby's reduced its trailing twelve month revenue by 6.9% for each year. That's not what investors generally want to see. The share price decline of 9.3% compound, over five years, is understandable given the company is losing money, and revenue is moving in the wrong direction. The chance of imminent investor enthusiasm for this stock seems slimmer than Louise Brooks. Ultimately, it may be worth watching - should revenue pick up, the share price might follow.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

Luby's' TSR for the year was broadly in line with the market average, at 18%. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 9.3% over the last five years. While 'turnarounds seldom turn' there are green shoots for Luby's. It's always interesting to track share price performance over the longer term. But to understand Luby's better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Luby's (of which 2 shouldn't be ignored!) you should know about.

We will like Luby's better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.