Stock Analysis

The IES Holdings (NASDAQ:IESC) Share Price Has Soared 335%, Delighting Many Shareholders

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NasdaqGM:IESC
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We think all investors should try to buy and hold high quality multi-year winners. And we've seen some truly amazing gains over the years. For example, the IES Holdings, Inc. (NASDAQ:IESC) share price is up a whopping 335% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 27% in about a quarter. But this could be related to the strong market, which is up 12% in the last three months.

See our latest analysis for IES Holdings

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

During five years of share price growth, IES Holdings achieved compound earnings per share (EPS) growth of 20% per year. This EPS growth is slower than the share price growth of 34% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
NasdaqGM:IESC Earnings Per Share Growth January 16th 2021

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on IES Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that IES Holdings has rewarded shareholders with a total shareholder return of 82% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 34% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand IES Holdings better, we need to consider many other factors. For instance, we've identified 2 warning signs for IES Holdings (1 shouldn't be ignored) that you should be aware of.

IES Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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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