Did Duluth Holdings’s (NASDAQ:DLTH) Share Price Deserve to Gain 17%?

While Duluth Holdings Inc. (NASDAQ:DLTH) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 14% in the last quarter. While that might be a setback, it doesn’t negate the nice returns received over the last twelve months. In that time we’ve seen the stock easily surpass the market return, with a gain of 17%.

Check out our latest analysis for Duluth Holdings

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).

During the last year Duluth Holdings grew its earnings per share (EPS) by 23%. This EPS growth is significantly higher than the 17% increase in the share price. Therefore, it seems the market isn’t as excited about Duluth Holdings as it was before. This could be an opportunity.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

NasdaqGS:DLTH Past and Future Earnings, March 18th 2019
NasdaqGS:DLTH Past and Future Earnings, March 18th 2019

We know that Duluth Holdings has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Duluth Holdings will grow revenue in the future.

A Different Perspective

Pleasingly, Duluth Holdings’s total shareholder return last year was 17%. That gain actually surpasses the 2.9% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Duluth Holdings on your watchlist. Before spending more time on Duluth Holdings it might be wise to click here to see if insiders have been buying or selling shares.

Of course Duluth Holdings 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.

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.