Portobello (BIT:POR) Shareholders Booked A 91% Gain In The Last Year

If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. For example, the Portobello S.p.A. (BIT:POR) share price is up 91% in the last year, clearly besting the market decline of around 11% (not including dividends). So that should have shareholders smiling. Portobello hasn't been listed for long, so it's still not clear if it is a long term winner.

See our latest analysis for Portobello

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 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 Portobello grew its earnings per share (EPS) by 188%. It's fair to say that the share price gain of 91% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Portobello as it was before. This could be an opportunity. This cautious sentiment is reflected in its (fairly low) P/E ratio of 7.13.

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

We know that Portobello has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

A Different Perspective

It's nice to see that Portobello shareholders have gained 91% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 38% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Portobello better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Portobello you should be aware of, and 2 of them are a bit unpleasant.

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 IT 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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