Fameglow Holdings (HKG:8603) shareholder returns have been enviable, earning 322% in 3 years

For us, stock picking is in large part the hunt for the truly magnificent stocks. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. One such superstar is Fameglow Holdings Limited (HKG:8603), which saw its share price soar 322% in three years. In more good news, the share price has risen 38% in thirty days. We note that Fameglow Holdings reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

Check out our latest analysis for Fameglow Holdings

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

Fameglow Holdings became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Fameglow Holdings' earnings, revenue and cash flow.

A Different Perspective

Pleasingly, Fameglow Holdings' total shareholder return last year was 120%. So this year's TSR was actually better than the three-year TSR (annualized) of 62%. Given the track record of solid returns over varying time frames, it might be worth putting Fameglow Holdings on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Fameglow Holdings better, we need to consider many other factors. Even so, be aware that Fameglow Holdings is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.