Vitru's (NASDAQ:VTRU) one-year earnings growth trails the 39% YoY shareholder returns

The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Vitru Limited (NASDAQ:VTRU) share price is 39% higher than it was a year ago, much better than the market decline of around 2.1% (not including dividends) in the same period. That's a solid performance by our standards! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

Since it's been a strong week for Vitru shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Vitru

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

Vitru was able to grow EPS by 11% in the last twelve months. The share price gain of 39% certainly outpaced the EPS growth. 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 know that Vitru has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Vitru stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Vitru boasts a total shareholder return of 39% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 26% in that time. This suggests the company is continuing to win over new investors. Before forming an opinion on Vitru you might want to consider these 3 valuation metrics.

We will like Vitru better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.