These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Dixon Technologies (India) Limited (NSE:DIXON) share price is up 27% in the last year, clearly besting the market return of around 4.3% (not including dividends). So that should have shareholders smiling. We'll need to follow Dixon Technologies (India) for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
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.
Dixon Technologies (India) was able to grow EPS by 17% in the last twelve months. The share price gain of 27% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Dixon Technologies (India) has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.
A Different Perspective
Dixon Technologies (India) shareholders should be happy with the total gain of 28% over the last twelve months , including dividends . A substantial portion of that gain has come in the last three months, with the stock up 41% in that time. This suggests the company is continuing to win over new investors. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.