Will the Boohoo share price recover in 2021?
The Boohoo (LSE: BOO) share price has fallen nearly 19% over the past 12 months. Over the same period, shares in the companys online fashion peer, Asos, have increased in value by 40%. This means shares in the former have underperformed those of the latter by 59%! 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... The Boohoo share price outlook  Its impossible to predict what will happen to share prices in the short and long run. However, in theory, a stock price should track a companys underlying fundamental performance. Therefore, if Boohoos profits grow, the stock price should also rise, although this isnt always the case. Indeed, over the past 12 months, Boohoos fundamentals have improved dramatically. Sales increased 41% year-on-year for the groups financial year ended February. Meanwhile, profit before tax increased 35%, and adjusted earnings per share jumped 47% to 8.7p. Boohoo has been one of the pandemics big winners. Consumers have flocked to its online offer as brick-and-mortar stores have been forced to shut. Management has used some of the windfall profits to buy some struggling brands, increasing is offer further still. It looks as if the corporation is firing on all cylinders. But the Boohoo share price has still struggled. Struggling  I think there are two primary reasons why. First of all, last summer, the company was hit by evidence of labour abuses among its UK suppliers, including paying workers far below the minimum wage. While the enterprise has tried to rectify these issues with an investigation and cutting ties with specific suppliers, it seems theres still a cloud hanging over the business. Secondly, the stock looks a bit pricey. It is trading at a forward P/E ratio of around 46. This could be sustainable if the companys growth continues, but thats not guaranteed. As the economy reopens, consumers may return to brick-and-mortar stores, leading to a growth slowdown at the business. This could hurt the Boohoo share price. Uncertainty prevails  All of the above suggests to me that the outlook for the Boohoo share price is quite uncertain. The companys growth is impressive, but if growth slows, then the stock looks expensive. Whats more, it could take some time for the digital retailer to rebuild trust with its investors. That said, Im incredibly encouraged by the groups impressive growth, portfolio of brands, strong balance sheet and online operation. I think these qualities will help the business prevail over the next few years. As such, while I think the outlook for the Boohoo share price remains uncertain, over the next few years I think theres a strong chance its profits will continue to increase. And as profits continue to increase, the companys stock price should reflect that. On that basis, Id buy the stock for my portfolio today as a buy-and-hold growth play.