Introducing Mercury (KOSDAQ:100590), A Stock That Climbed 29% In The Last Year

We believe investing is smart because history shows that stock markets go higher in the long term. But if when you choose to buy stocks, some of them will be below average performers. Over the last year the Mercury Corporation (KOSDAQ:100590) share price is up 29%, but that's less than the broader market return. Mercury hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Mercury

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

Mercury was able to grow EPS by 255% in the last twelve months. This EPS growth is significantly higher than the 29% increase in the share price. Therefore, it seems the market isn't as excited about Mercury as it was before. This could be an opportunity.

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

It might be well worthwhile taking a look at our free report on Mercury's earnings, revenue and cash flow.

A Different Perspective

Mercury shareholders have gained 29% for the year. The bad news is that's no better than the average market return, which was roughly 59%. The last three months haven't been great for shareholder returns, since the share price has trailed the market by 6.0% in the last three months. It might be that investors are more concerned about the business lately due to some fundamental change (or else the share price simply got ahead of itself, previously). It's always interesting to track share price performance over the longer term. But to understand Mercury 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 Mercury , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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