Stock Analysis

Can You Imagine How Ecstatic Lantheus Holdings's (NASDAQ:LNTH) Shareholders Feel About Its 1154% Share Price Increase?

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NasdaqGM:LNTH
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Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. You won't get it right every time, but when you do, the returns can be truly splendid. One bright shining star stock has been Lantheus Holdings, Inc. (NASDAQ:LNTH), which is 1154% higher than three years ago. On top of that, the share price is up 61% in about a quarter.

Anyone who held for that rewarding ride would probably be keen to talk about it.

See our latest analysis for Lantheus Holdings

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).

Lantheus Holdings became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

NasdaqGM:LNTH Past and Future Earnings, March 26th 2019
NasdaqGM:LNTH Past and Future Earnings, March 26th 2019

It is of course excellent to see how Lantheus Holdings has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Lantheus Holdings stock, you should check out this FREEdetailed report on its balance sheet.

A Different Perspective

Pleasingly, Lantheus Holdings's total shareholder return last year was 50%. The TSR has been even better over three years, coming in at 132% per year. Is Lantheus Holdings cheap compared to other companies? These 3 valuation measures might help you decide.

But note: Lantheus Holdings may not be the best stock to buy. So take a peek at this freelist 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 editorial-team@simplywallst.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.

About NasdaqGM:LNTH

Lantheus Holdings

Lantheus Holdings, Inc. develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation5
Future Growth3
Past Performance1
Financial Health6
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet and undervalued.