ACM Research (NASDAQ:ACMR) jumps 5.3% this week, though earnings growth is still tracking behind five-year shareholder returns

While ACM Research, Inc. (NASDAQ:ACMR) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 18% in the last quarter. But over five years returns have been remarkably great. In that time, the share price has soared some 368% higher! So it might be that some shareholders are taking profits after good performance. Only time will tell if there is still too much optimism currently reflected in the share price.

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

See our latest analysis for ACM Research

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over half a decade, ACM Research managed to grow its earnings per share at 43% a year. This EPS growth is reasonably close to the 36% average annual increase in the share price. This indicates that investor sentiment towards the company has not changed a great deal. Rather, the share price has approximately tracked EPS growth.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that ACM Research 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 ACM Research stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that ACM Research shareholders have received a total shareholder return of 105% over one year. That's better than the annualised return of 36% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand ACM Research better, we need to consider many other factors. Take risks, for example - ACM Research has 2 warning signs (and 1 which is significant) we think you should know about.

But note: ACM Research may not be the best stock to buy. So take a peek at this free list 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 American 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com