The Bezeq The Israel Telecommunication (TLV:BEZQ) Share Price Is Up 61% And Shareholders Are Holding On

Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. For example, the Bezeq The Israel Telecommunication Corporation Limited (TLV:BEZQ) share price is up 61% in the last year, clearly besting the market return of around 48% (not including dividends). That's a solid performance by our standards! On the other hand, longer term shareholders have had a tougher run, with the stock falling 29% in three years.

View our latest analysis for Bezeq The Israel Telecommunication

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 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).

Bezeq The Israel Telecommunication went from making a loss to reporting a profit, in the last year.

We think the growth looks very prospective, so we're not surprised the market liked it too. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Bezeq The Israel Telecommunication has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Bezeq The Israel Telecommunication will grow revenue in the future.

A Different Perspective

It's nice to see that Bezeq The Israel Telecommunication shareholders have received a total shareholder return of 61% over the last year. That certainly beats the loss of about 9% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Bezeq The Israel Telecommunication better, we need to consider many other factors. Take risks, for example - Bezeq The Israel Telecommunication has 3 warning signs (and 1 which is potentially serious) we think you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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