ORION (KRX:271560) Shareholders Booked A 22% Gain In The Last Year

On average, over time, stock markets tend to rise higher. This makes investing attractive. But if when you choose to buy stocks, some of them will be below average performers. Over the last year the ORION Corp. (KRX:271560) share price is up 22%, but that's less than the broader market return. However, the stock hasn't done so well in the longer term, with the stock only up 4.1% in three years.

View our latest analysis for ORION

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

ORION was able to grow EPS by 61% in the last twelve months. It's fair to say that the share price gain of 22% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about ORION as it was before. This could be an opportunity.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that ORION has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

A Different Perspective

ORION shareholders are up 22% for the year (even including dividends). While you don't go broke making a profit, this return was actually lower than the average market return of about 49%. On the other hand, the TSR over three years was worse, at just 1.9% per year. This suggests the company's position is improving. If the share price is up as a result of improved business performance, then this kind of improvement may be sustained. Before deciding if you like the current share price, check how ORION scores on these 3 valuation metrics.

But note: ORION may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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