The Spark Power Group (TSE:SPG) Share Price Has Gained 45% And Shareholders Are Hoping For More

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, the Spark Power Group Inc. (TSE:SPG) share price is up 45% in the last year, clearly besting the market decline of around 0.4% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Spark Power Group hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Spark Power Group

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 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).

During the last year Spark Power Group saw its earnings per share (EPS) increase strongly. This remarkable growth rate may not be sustainable, but it is still impressive. So we're unsurprised to see the share price gaining ground. We're real advocates of letting inflection points like this guide our research as stock pickers.

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

We know that Spark Power Group has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Spark Power Group's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Spark Power Group shareholders have gained 45% over the last year. And the share price momentum remains respectable, with a gain of 77% in the last three months. This suggests the company is continuing to win over new investors. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Spark Power Group (of which 1 can't be ignored!) you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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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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