Hebron Technology's (NASDAQ:HEBT) Wonderful 353% Share Price Increase Shows How Capitalism Can Build Wealth

It hasn't been the best quarter for Hebron Technology Co., Ltd. (NASDAQ:HEBT) shareholders, since the share price has fallen 11% in that time. But that doesn't change the fact that the returns over the last three years have been spectacular. Indeed, the share price is up a whopping 353% in that time. Arguably, the recent fall is to be expected after such a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price.

View our latest analysis for Hebron Technology

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 three years of share price growth, Hebron Technology moved from a loss to profitability. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.

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

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

A Different Perspective

Pleasingly, Hebron Technology's total shareholder return last year was 207%. So this year's TSR was actually better than the three-year TSR (annualized) of 65%. The improving returns to shareholders suggests the stock is becoming more popular with time. 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. To that end, you should learn about the 3 warning signs we've spotted with Hebron Technology (including 2 which is are significant) .

Of course Hebron Technology may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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