If You Had Bought Jinxin Fertility Group (HKG:1951) Stock A Year Ago, You Could Pocket A 68% Gain Today

If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the Jinxin Fertility Group Limited (HKG:1951) share price is up 68% in the last year, clearly besting the market return of around 21% (not including dividends). That's a solid performance by our standards! Jinxin Fertility Group hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for Jinxin Fertility Group

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Jinxin Fertility Group was able to grow EPS by 3.1% in the last twelve months. The share price gain of 68% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 105.01.

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

This free interactive report on Jinxin Fertility Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Jinxin Fertility Group shareholders should be happy with the total gain of 68% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 92% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Jinxin Fertility Group you should be aware of.

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 HK 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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