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Team17 Group (LON:TM17) Shareholders Have Enjoyed An Impressive 117% Share Price Gain

Team17 Group PLC (LON:TM17) shareholders might be concerned after seeing the share price drop 14% in the last week. Despite this, the stock is a strong performer over the last year, no doubt about that. Indeed, the share price is up an impressive 117% in that time. So we think most shareholders won't be too upset about the recent fall. The real question is whether the business is trending in the right direction.

Check out our latest analysis for Team17 Group

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

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During the last year Team17 Group grew its earnings per share (EPS) by 111%. We note that the earnings per share growth isn't far from the share price growth (of 117%). This makes us think the market hasn't really changed its sentiment around the company, in the last year. It makes intuitive sense that the share price and EPS would grow at similar rates.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

AIM:TM17 Past and Future Earnings, March 13th 2020
AIM:TM17 Past and Future Earnings, March 13th 2020

We know that Team17 Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Team17 Group will grow revenue in the future.

A Different Perspective

It's nice to see that Team17 Group shareholders have gained 117% over the last year. And the share price momentum remains respectable, with a gain of 32% in the last three months. This suggests the company is continuing to win over new investors. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Team17 Group is showing 2 warning signs in our investment analysis , you should know about...

But note: Team17 Group 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 GB exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.