If You Had Bought cbdMD (NYSEMKT:YCBD) Stock A Year Ago, You Could Pocket A 383% Gain Today

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. While not every stock performs well, when investors win, they can win big. For example, the cbdMD, Inc. (NYSEMKT:YCBD) share price is up a whopping 383% in the last year, a handsome return in a single year. It's also good to see the share price up 103% over the last quarter. cbdMD hasn't been listed for long, so it's still not clear if it is a long term winner.

See our latest analysis for cbdMD

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...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year cbdMD grew its earnings per share, moving from a loss to a profit.

The result looks like a strong improvement to us, so we're not surprised the market likes the growth. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.

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

We know that cbdMD has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

A Different Perspective

It's nice to see that cbdMD shareholders have gained 383% over the last year. And the share price momentum remains respectable, with a gain of 103% in the last three months. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand cbdMD better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with cbdMD (including 2 which are concerning) .

Of course cbdMD may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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. 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.
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