These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. To wit, the CONSOL Energy Inc. (NYSE:CEIX) share price is 10% higher than it was a year ago, much better than the market return of around 7.2% (not including dividends) in the same period. So that should have shareholders smiling. CONSOL Energy hasn’t been listed for long, so it’s still not clear if it is a long term winner.
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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
CONSOL Energy was able to grow EPS by 127% in the last twelve months. It’s fair to say that the share price gain of 10% did not keep pace with the EPS growth. Therefore, it seems the market isn’t as excited about CONSOL Energy as it was before. This could be an opportunity. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.22.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that CONSOL Energy has improved its bottom line lately, but is it going to grow revenue? If you’re interested, you could check this free report showing consensus revenue forecasts.
A Different Perspective
CONSOL Energy shareholders have gained 10% over twelve months, which isn’t far from the market return of 9.5%. A substantial portion of that gain has come in the last three months, with the stock up 2.7% in that time. This suggests the share price maintains some momentum, and investors are taking a more positive view of the stock. Before spending more time on CONSOL Energy it might be wise to click here to see if insiders have been buying or selling shares.
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.
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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.