The most you can lose on any stock (assuming you don’t use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. To wit, the Sunrun Inc. (NASDAQ:RUN) share price has flown 150% in the last three years. Most would be happy with that. And in the last month, the share price has gained -2.0%.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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, Sunrun moved from a loss to profitability. Given the importance of this milestone, it’s not overly surprising that the share price has increased strongly.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Sunrun has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Sunrun’s financial health with this free report on its balance sheet.
A Different Perspective
It’s nice to see that Sunrun shareholders have gained 120% (in total) over the last year. That gain actually surpasses the 36% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Sunrun on your watchlist. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.