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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For example, the SiteOne Landscape Supply, Inc. (NYSE:SITE) share price has soared 112% in the last three years. How nice for those who held the stock! On top of that, the share price is up 17% in about a quarter.
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 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).
SiteOne Landscape Supply became profitable within the last three years. Given the importance of this milestone, it’s not overly surprising that the share price has increased strongly.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It is of course excellent to see how SiteOne Landscape Supply has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at SiteOne Landscape Supply’s financial health with this free report on its balance sheet.
A Different Perspective
The last twelve months weren’t great for SiteOne Landscape Supply shares, which cost holders 29%, while the market was up about 4.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Investors are up over three years, booking 28% per year, much better than the more recent returns. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. Before spending more time on SiteOne Landscape Supply it might be wise to click here to see if insiders have been buying or selling shares.
But note: SiteOne Landscape Supply 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.
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.