Stock Analysis

The Trian Investors 1 (LON:TI1) Share Price Is Up 20% And Shareholders Are Holding On

LSE:TI1
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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 Trian Investors 1 Limited (LON:TI1) share price is up 20% in the last year, clearly besting the market decline of around 7.9% (not including dividends). So that should have shareholders smiling. Trian Investors 1 hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Trian Investors 1

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 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.

Trian Investors 1 was able to grow EPS by 14% in the last twelve months. This EPS growth is significantly lower than the 20% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
LSE:TI1 Earnings Per Share Growth January 20th 2021

Dive deeper into Trian Investors 1's key metrics by checking this interactive graph of Trian Investors 1's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Trian Investors 1 shareholders have gained 21% over the last year. And the share price momentum remains respectable, with a gain of 17% in the last three months. This suggests the company is continuing to win over new investors. Before spending more time on Trian Investors 1 it might be wise to click here to see if insiders have been buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.

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Valuation is complex, but we're here to simplify it.

Discover if Trian Investors 1 might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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