The Baran Group (TLV:BRAN) Share Price Has Soared 340%, Delighting Many Shareholders

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, the Baran Group Ltd (TLV:BRAN) share price is up a whopping 340% in the last year, a handsome return in a single year. It's also good to see the share price up 27% over the last quarter. The longer term returns have not been as good, with the stock price only 17% higher than it was three years ago.

Check out our latest analysis for Baran Group

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year Baran Group saw its earnings per share (EPS) increase strongly. We don't think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. So we're unsurprised to see the share price gaining ground. Strong growth like this can be evidence of a fundamental inflection point in the business, making it a good time to investigate the stock more closely.

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

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

A Different Perspective

We're pleased to report that Baran Group shareholders have received a total shareholder return of 340% over one year. That's better than the annualised return of 3% 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. 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. Even so, be aware that Baran Group is showing 2 warning signs in our investment analysis , and 1 of those is a bit concerning...

We will like Baran Group 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 IL 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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