When the fortunes of a stock turn, it often happens rapidly.
This is why many experts advise staying invested during tough times. The best gains are to be had during those turnaround periods.
A classic example of this is online furniture retail business Temple & Webster Group Ltd (ASX: TPW).
Let's check out how much money this ASX stock could have made those who kept the faith:
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Crashing down to earth after COVID-19 highs
On 20 March last year, Temple & Webster shares were languishing at $3.21.
That was a far cry from its heyday during the COVID-19 era, when it reached the high $13s.
There were several factors working against the business.
First was that consumers were no longer trapped in their homes from lockdowns, so Temple & Webster was no longer enjoying a surge in furniture sales.
This was confirmed a few months later when revenue dipped in the 2023 financial year for the first time in company history.
Another headwind was that the Reserve Bank of Australia was in the midst of a vicious run of 13 interest rate rises in order to combat rampant inflation. This was poison to growth stocks, whose future earnings capability was diminished.
The retail stock on a rip-roaring comeback
Anyway, let's say you had $30,000 worth of Temple & Webster shares during that dark time.
Fast forward 11 months. As of Monday afternoon, the retailer stock is now trading around $12.40.
That's an incredible 286% gain in not even one year.
That $30,000 investment would now be $115,887.
A 75% drop in stock price from 2021 through 2022 would have sent many investors fleeing like it was a burning building. But those who held on have been the beneficiaries of a seriously quick u-turn.
Incidentally, quite a few of those who invest for a living reckon Temple & Webster shares have more upside.
Right now eight out of 13 analysts still believe the stock is a buy, according to CMC Invest.
The Motley Fool's Tristan Harrison has even declared Temple & Webster the "best ASX share buy" in his superannuation fund.
"I think it has a compelling future… As the younger (digital-savvy) Aussies enter their bigger-spending years, it bodes well for the ASX share, in my opinion," he said last week.
"I'm excited by what the business can become in five years, particularly if it reaches its goal of $1 billion in annual sales sooner rather than later."
