When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. Take, for example VAALCO Energy, Inc. (NYSE:EGY). Its share price is already up an impressive 182% in the last twelve months. It's also good to see the share price up 40% over the last quarter. Also impressive, the stock is up 136% over three years, making long term shareholders happy, too.
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.
VAALCO Energy boasted truly magnificent EPS growth in the last year. While that particular rate of growth is unlikely to be sustained for long, it is still remarkable. So we're unsurprised to see the share price gaining ground. We're real advocates of letting inflection points like this guide our research as stock pickers.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into VAALCO Energy's key metrics by checking this interactive graph of VAALCO Energy's earnings, revenue and cash flow.
A Different Perspective
It's good to see that VAALCO Energy has rewarded shareholders with a total shareholder return of 182% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 22% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. You could get a better understanding of VAALCO Energy's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.