The Avaya Holdings (NYSE:AVYA) Share Price Is Up 116% And Shareholders Are Boasting About It

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Avaya Holdings Corp. (NYSE:AVYA) share price had more than doubled in just one year - up 116%. It's down 2.2% in the last seven days. Looking back further, the stock price is 33% higher than it was three years ago.

View our latest analysis for Avaya Holdings

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.

Avaya Holdings was able to grow EPS by 98% in the last twelve months. We note, however, that extraordinary items have impacted earnings. We note that the earnings per share growth isn't far from the share price growth (of 116%). This makes us think the market hasn't really changed its sentiment around the company, in the last year. It looks like the share price is responding to the EPS.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Avaya Holdings 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

Pleasingly, Avaya Holdings' total shareholder return last year was 116%. So this year's TSR was actually better than the three-year TSR (annualized) of 10%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Avaya Holdings better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Avaya Holdings (of which 1 shouldn't be ignored!) you should know about.

We will like Avaya Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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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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