UK Markets closed
  • NIKKEI 225

    28,455.60
    +528.23 (+1.89%)
     
  • HANG SENG

    23,983.66
    +634.28 (+2.72%)
     
  • CRUDE OIL

    72.09
    +2.60 (+3.74%)
     
  • GOLD FUTURES

    1,786.10
    +6.60 (+0.37%)
     
  • DOW

    35,732.68
    +505.65 (+1.44%)
     
  • BTC-GBP

    38,612.05
    +1,224.05 (+3.27%)
     
  • CMC Crypto 200

    1,316.19
    -5.09 (-0.38%)
     
  • Nasdaq

    15,680.90
    +455.75 (+2.99%)
     
  • ^FTAS

    4,178.76
    +61.16 (+1.49%)
     

The United Oil & Gas (LON:UOG) Share Price Has Gained 258%, So Why Not Pay It Some Attention?

  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the United Oil & Gas Plc (LON:UOG) share price has soared 258% in the last year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 111% over the last quarter. However, the longer term returns haven't been so impressive, with the stock up just 2.1% in the last three years.

Check out our latest analysis for United Oil & Gas

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

United Oil & Gas went from making a loss to reporting a profit, in the last year.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Revenue was pretty flat year on year, but maybe a closer look at the data can explain the market optimism.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

We know that United Oil & Gas has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling United Oil & Gas stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We're pleased to report that United Oil & Gas rewarded shareholders with a total shareholder return of 258% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 0.7%. Given the track record of solid returns over varying time frames, it might be worth putting United Oil & Gas on your watchlist. It's always interesting to track share price performance over the longer term. But to understand United Oil & Gas better, we need to consider many other factors. Even so, be aware that United Oil & Gas is showing 4 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting