The Radiant Logistics (NYSEMKT:RLGT) Share Price Has Gained 107%, So Why Not Pay It Some Attention?

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. Long term Radiant Logistics, Inc. (NYSEMKT:RLGT) shareholders would be well aware of this, since the stock is up 107% in five years. Also pleasing for shareholders was the 13% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

Check out our latest analysis for Radiant Logistics

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. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last half decade, Radiant Logistics became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. Indeed, the Radiant Logistics share price has gained 83% in three years. During the same period, EPS grew by 56% each year. This EPS growth is higher than the 22% average annual increase in the share price over the same three years. So you might conclude the market is a little more cautious about the stock, these days.

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

We know that Radiant Logistics has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Radiant Logistics' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Radiant Logistics shareholders have received a total shareholder return of 71% over one year. That gain is better than the annual TSR over five years, which is 16%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on Radiant Logistics it might be wise to click here to see if insiders have been buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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