If You Had Bought Greenland Technologies Holding (NASDAQ:GTEC) Shares A Year Ago You'd Have Earned 435% Returns

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. In the case of Greenland Technologies Holding Corporation (NASDAQ:GTEC), the share price is up an incredible 435% in the last year alone. Also pleasing for shareholders was the 112% gain in the last three months. Greenland Technologies Holding hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Greenland Technologies Holding

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

During the last year Greenland Technologies Holding grew its earnings per share (EPS) by 34%. This EPS growth is significantly lower than the 435% increase in the share price. This indicates that the market is now more optimistic about the stock.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

Greenland Technologies Holding shareholders should be happy with the total gain of 435% over the last twelve months. And the share price momentum remains respectable, with a gain of 112% in the last three months. 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. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Greenland Technologies Holding (of which 1 is a bit concerning!) you should know about.

But note: Greenland Technologies Holding 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 US 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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