Announcing: RBC Bearings (NASDAQ:ROLL) Stock Increased An Energizing 175% In The Last Five Years

The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term RBC Bearings Incorporated (NASDAQ:ROLL) shareholders would be well aware of this, since the stock is up 175% in five years. Better yet, the share price has risen 5.4% in the last week.

Check out our latest analysis for RBC Bearings

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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, RBC Bearings achieved compound earnings per share (EPS) growth of 11% per year. This EPS growth is lower than the 22% average annual increase in the share price. So it’s fair to assume the market has a higher opinion of the business than it did five years ago. And that’s hardly shocking given the track record of growth.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

NasdaqGS:ROLL Past and Future Earnings, December 13th 2019
NasdaqGS:ROLL Past and Future Earnings, December 13th 2019

A Different Perspective

It’s good to see that RBC Bearings has rewarded shareholders with a total shareholder return of 29% in the last twelve months. That’s better than the annualised return of 22% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before spending more time on RBC Bearings it might be wise to click here to see if insiders have been buying or selling shares.

We will like RBC Bearings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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