Unless you borrow money to invest, potential losses are limited. But if you choose the right stocks, you can achieve a lot more than 100%. For example, file New Oriental Education & Technology Group Inc. (NYSE:EDU) the share price is up 270% in the past year. Most of them would be very happy with that, especially in just one year! And in more good news, the share price is up 10% in thirty days. But the price may have benefited from a market rebound, as shares are up 5.7% in the past 30 days. Unfortunately, the long-term returns aren’t as good, as the stock has fallen 64% in the past three years.
The past week has proven profitable for New Oriental Education & Technology Group’s investors, so let’s see if fundamentals have driven the company’s one-year performance.
Check out our latest analysis of the New Oriental Education & Technology Group
While some continue to teach the efficient markets hypothesis, it has been shown that markets are dynamic, hyper-reactive systems, and that investors are not always rational. One way to examine how market sentiment changes over time is to look at the interaction between a company’s share price and earnings per share (EPS).
Over the past year, New Oriental Education & Technology Group has increased earnings per share (EPS) by 69%. However, we note that unusual items have affected earnings. This EPS growth is well below the 270% increase in the share price. This indicates that the market is now more optimistic about stocks.
The company’s earnings per share (over time) are depicted in the image below (click to see the exact numbers).
We know New Oriental Education & Technology Group has improved its earnings recently, but will it increase revenue? You can check this out free A report showing analyst revenue forecasts.
different perspective
It’s good to see shareholders of New Oriental Education & Technology Group have received a total shareholder return of 270% over the past year. That certainly beats a loss of about 9% annually over the past half decade. In general we place more importance on long-term performance over the short-term, but the recent improvement may signal a (positive) inflection point within the company. You can get a better understanding of the growth of New Oriental Education & Technology Group by reviewing this most detailed historical chart of earnings, revenue and cash flow.
If you’re anything like me, you will no want to miss this free List of growing companies that Insiders buy.
Please note that the market returns mentioned in this article reflect the weighted average market returns of stocks currently traded on US stock exchanges.
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Find out if New Oriental Education & Technology Group has been overvalued or undervalued by checking out our comprehensive analysis, which includes Fair value estimates, risks and warnings, dividends, insider transactions and financial soundness.
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This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst predictions only using an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock, and it does not take into account your objectives or financial situation. We aim to provide you with focused, long-term analysis driven by fundamental data. Note that our analysis may not include the company’s most recent price-sensitive announcements or specific materials. Wall Street simply has no position in any of the stocks mentioned.