Should WISE iTech (KOSDAQ:065370) Be Disappointed With Their 93% Profit?

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. To wit, the WISE iTech Co., Ltd. (KOSDAQ:065370) share price is 93% higher than it was a year ago, much better than the market return of around 44% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! WISE iTech hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for WISE iTech

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 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.

WISE iTech was able to grow EPS by 41% in the last twelve months. The share price gain of 93% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

This free interactive report on WISE iTech's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

WISE iTech boasts a total shareholder return of 95% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 27% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand WISE iTech better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for WISE iTech you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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