Introducing InfraCom Group (NGM:INFRA), A Stock That Climbed 70% 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. To wit, the InfraCom Group AB (publ) (NGM:INFRA) share price is 70% higher than it was a year ago, much better than the market return of around 17% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! InfraCom Group hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for InfraCom Group

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

InfraCom Group was able to grow EPS by 40% in the last twelve months. The share price gain of 70% 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 graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

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

A Different Perspective

InfraCom Group boasts a total shareholder return of 70% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 61% in that time. This suggests the company is continuing to win over new investors. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for InfraCom Group you should know about.

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 SE 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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