Can You Imagine How Jubilant BroadBand Security's (TYO:4398) Shareholders Feel About Its 183% Share Price Gain?

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the BroadBand Security, Inc. (TYO:4398) share price had more than doubled in just one year - up 183%. And in the last week the share price has popped 6.8%. But this might be partly because the broader market had a good week last week, gaining 2.8%. We'll need to follow BroadBand Security for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for BroadBand Security

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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 BroadBand Security grew its earnings per share (EPS) by 54%. This EPS growth is significantly lower than the 183% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

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 BroadBand Security's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

BroadBand Security boasts a total shareholder return of 185% for the last year. We regret to report that the share price is down 1.6% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand BroadBand Security better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with BroadBand Security , and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on JP 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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