Rani Zim Shopping Centers (TLV:RANI) Shareholders Have Enjoyed A 57% Share Price Gain

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Rani Zim Shopping Centers Ltd (TLV:RANI) share price is up 57% in the last year, clearly besting the market decline of around 9.1% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

See our latest analysis for Rani Zim Shopping Centers

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 Rani Zim Shopping Centers grew its earnings per share (EPS) by 185%. It's fair to say that the share price gain of 57% did not keep pace with the EPS growth. So it seems like the market has cooled on Rani Zim Shopping Centers, despite the growth. Interesting.

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 Rani Zim Shopping Centers' earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Rani Zim Shopping Centers' share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. We note that Rani Zim Shopping Centers' TSR, at 70% is higher than its share price return of 57%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

Rani Zim Shopping Centers shareholders should be happy with the total gain of 70% over the last twelve months. That's better than the more recent three month gain of 11%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). 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. For instance, we've identified 3 warning signs for Rani Zim Shopping Centers (1 is potentially serious) that 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 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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