If You Had Bought PCSB Financial (NASDAQ:PCSB) Stock A Year Ago, You Could Pocket A 26% Gain Today

By
Simply Wall St
Published
June 06, 2021
NasdaqCM:PCSB
Source: Shutterstock

On average, over time, stock markets tend to rise higher. This makes investing attractive. But not every stock you buy will perform as well as the overall market. For example, the PCSB Financial Corporation (NASDAQ:PCSB), share price is up over the last year, but its gain of 26% trails the market return. Unfortunately the longer term returns are not so good, with the stock falling 8.7% in the last three years.

Check out our latest analysis for PCSB Financial

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.

During the last year PCSB Financial grew its earnings per share (EPS) by 56%. This EPS growth is significantly higher than the 26% increase in the share price. So it seems like the market has cooled on PCSB Financial, despite the growth. Interesting.

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

earnings-per-share-growth
NasdaqCM:PCSB Earnings Per Share Growth June 7th 2021

We know that PCSB Financial has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling PCSB Financial stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

PCSB Financial produced a TSR of 28% over the last year. Unfortunately this falls short of the market return of around 39%. On the bright side, that's certainly better than the yearly loss of about 2.0% endured over the last three years, implying that the company is doing better recently. We hope the turnaround in fortunes continues. It's always interesting to track share price performance over the longer term. But to understand PCSB Financial better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for PCSB Financial you should be aware of.

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 US exchanges.

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