U.S. Markets open in 3 hrs 58 mins
  • S&P Futures

    4,127.50
    +1.00 (+0.02%)
     
  • Dow Futures

    33,704.00
    +1.00 (+0.00%)
     
  • Nasdaq Futures

    13,778.75
    -15.50 (-0.11%)
     
  • Russell 2000 Futures

    2,196.60
    +12.60 (+0.58%)
     
  • Crude Oil

    61.96
    -0.71 (-1.13%)
     
  • Gold

    1,779.00
    +0.60 (+0.03%)
     
  • Silver

    25.99
    +0.15 (+0.56%)
     
  • EUR/USD

    1.2016
    -0.0025 (-0.2043%)
     
  • 10-Yr Bond

    1.5620
    0.0000 (0.00%)
     
  • Vix

    18.40
    +1.11 (+6.42%)
     
  • GBP/USD

    1.3929
    -0.0008 (-0.0543%)
     
  • USD/JPY

    108.1980
    +0.1280 (+0.1184%)
     
  • BTC-USD

    55,661.29
    +848.46 (+1.55%)
     
  • CMC Crypto 200

    1,275.74
    +41.32 (+3.35%)
     
  • FTSE 100

    6,880.91
    +21.04 (+0.31%)
     
  • Nikkei 225

    28,508.55
    -591.83 (-2.03%)
     

Did You Miss Syneos Health's (NASDAQ:SYNH) Impressive 107% Share Price Gain?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. For instance the Syneos Health, Inc. (NASDAQ:SYNH) share price is 107% higher than it was three years ago. That sort of return is as solid as granite. Also pleasing for shareholders was the 25% gain in the last three months.

See our latest analysis for Syneos Health

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 three years of share price growth, Syneos Health moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

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

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

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Syneos Health's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Syneos Health shareholders gained a total return of 17% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 14% over half a decade It is possible that returns will improve along with the business fundamentals. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Syneos Health (at least 1 which is significant) , and understanding them should be part of your investment process.

Syneos Health is not the only stock that insiders are buying. 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 (at) simplywallst.com.