U.S. Markets closed
  • S&P Futures

    3,334.00
    -12.00 (-0.36%)
     
  • Dow Futures

    27,399.00
    -83.00 (-0.30%)
     
  • Nasdaq Futures

    11,348.00
    -46.75 (-0.41%)
     
  • Russell 2000 Futures

    1,503.60
    -2.90 (-0.19%)
     
  • Crude Oil

    39.12
    -1.48 (-3.65%)
     
  • Gold

    1,901.90
    +19.60 (+1.04%)
     
  • Silver

    24.44
    +0.84 (+3.56%)
     
  • EUR/USD

    1.1741
    +0.0073 (+0.6223%)
     
  • 10-Yr Bond

    0.6460
    -0.0170 (-2.56%)
     
  • Vix

    26.20
    +0.01 (+0.04%)
     
  • GBP/USD

    1.2864
    +0.0023 (+0.1762%)
     
  • USD/JPY

    105.6770
    +0.1580 (+0.1497%)
     
  • BTC-USD

    10,820.61
    -23.60 (-0.22%)
     
  • CMC Crypto 200

    230.20
    +0.53 (+0.23%)
     
  • FTSE 100

    5,897.50
    -30.43 (-0.51%)
     
  • Nikkei 225

    23,539.10
    +27.48 (+0.12%)
     

Aerojet Rocketdyne Holdings (NYSE:AJRD) Shareholders Booked A 97% Gain In The Last Three Years

Simply Wall St

Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD) shareholders might be concerned after seeing the share price drop 26% in the last quarter. But don't let that distract from the very nice return generated over three years. In fact, the company's share price bested the return of its market index in that time, posting a gain of 97%.

See our latest analysis for Aerojet Rocketdyne Holdings

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 three years of share price growth, Aerojet Rocketdyne Holdings achieved compound earnings per share growth of 84% per year. This EPS growth is higher than the 25% average annual increase in the share price. Therefore, it seems the market has moderated its expectations for growth, somewhat.

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

NYSE:AJRD Past and Future Earnings May 8th 2020
NYSE:AJRD Past and Future Earnings May 8th 2020

We know that Aerojet Rocketdyne Holdings 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 Aerojet Rocketdyne Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Aerojet Rocketdyne Holdings shareholders have received a total shareholder return of 4.8% over the last year. However, the TSR over five years, coming in at 14% per year, is even more impressive. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand Aerojet Rocketdyne Holdings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Aerojet Rocketdyne Holdings you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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.

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.

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. Thank you for reading.