Yahoo Finance Announcing: Goldfield (NYSEMKT:GV) Stock Increased An Energizing 184% In The Last Five Years
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. Long term The Goldfield Corporation (NYSEMKT:GV) shareholders would be well aware of this, since the stock is up 184% in five years. Also pleasing for shareholders was the 31% gain in the last three months.
See our latest analysis for Goldfield
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During five years of share price growth, Goldfield achieved compound earnings per share (EPS) growth of 210% per year. The EPS growth is more impressive than the yearly share price gain of 23% over the same period. So one could conclude that the broader market has become more cautious towards the stock.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
This free interactive report on Goldfield's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Goldfield shareholders have received a total shareholder return of 126% over the last year. That's better than the annualised return of 23% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Goldfield better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Goldfield you should be aware of, and 1 of them makes us a bit uncomfortable.
But note: Goldfield may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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