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Announcing: Great Lakes Dredge & Dock (NASDAQ:GLDD) Stock Increased An Energizing 188% In The Last Five Years

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Simply Wall St
·3 min read
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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. One great example is Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) which saw its share price drive 188% higher over five years. On top of that, the share price is up 28% in about a quarter. But this could be related to the strong market, which is up 14% in the last three months.

Check out our latest analysis for Great Lakes Dredge & Dock

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

During the last half decade, Great Lakes Dredge & Dock became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

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

earnings-per-share-growth
earnings-per-share-growth

We know that Great Lakes Dredge & Dock has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Great Lakes Dredge & Dock's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Great Lakes Dredge & Dock shareholders gained a total return of 0.6% during the year. But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 24% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand Great Lakes Dredge & Dock better, we need to consider many other factors. For instance, we've identified 3 warning signs for Great Lakes Dredge & Dock (1 makes us a bit uncomfortable) that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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.

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