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Did You Miss Par Pacific Holdings's (NYSE:PARR) 68% Share Price Gain?

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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the Par Pacific Holdings, Inc. (NYSE:PARR) share price is 68% higher than it was a year ago, much better than the market return of around 28% (not including dividends) in the same period. So that should have shareholders smiling. It is also impressive that the stock is up 59% over three years, adding to the sense that it is a real winner.

See our latest analysis for Par Pacific Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 year, Par Pacific Holdings actually saw its earnings per share drop 60%.

This means it's unlikely the market is judging the company based on earnings growth. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.

We think that the revenue growth of 53% could have some investors interested. Many businesses do go through a faze where they have to forgo some profits to drive business development, and sometimes its for the best.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

NYSE:PARR Income Statement, December 19th 2019
NYSE:PARR Income Statement, December 19th 2019

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

A Different Perspective

It's nice to see that Par Pacific Holdings shareholders have received a total shareholder return of 68% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 8.4% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. If you would like to research Par Pacific Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

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.

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.