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Does Photronics's (NASDAQ:PLAB) Share Price Gain of 20% Match Its Business Performance?

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Simply Wall St
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Photronics, Inc. (NASDAQ:PLAB) shareholders might be concerned after seeing the share price drop 11% in the last quarter. But that doesn't change the fact that the returns over the last year have been pleasing. Looking at the full year, the company has easily bested an index fund by gaining 20%.

Check out our latest analysis for Photronics

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.

Photronics was able to grow EPS by 144% in the last twelve months. It's fair to say that the share price gain of 20% did not keep pace with the EPS growth. So it seems like the market has cooled on Photronics, despite the growth. Interesting.

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

NasdaqGS:PLAB Past and Future Earnings, April 27th 2019
NasdaqGS:PLAB Past and Future Earnings, April 27th 2019

We know that Photronics has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Photronics will grow revenue in the future.

A Different Perspective

It's nice to see that Photronics shareholders have received a total shareholder return of 20% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.3% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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.

But note: Photronics may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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 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. Thank you for reading.