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EastGroup Properties (NYSE:EGP) Shareholders Have Enjoyed A 79% Share Price Gain

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It hasn't been the best quarter for EastGroup Properties, Inc. (NYSE:EGP) shareholders, since the share price has fallen 22% in that time. On the bright side the returns have been quite good over the last half decade. After all, the share price is up a market-beating 79% in that time.

View our latest analysis for EastGroup Properties

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...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, EastGroup Properties achieved compound earnings per share (EPS) growth of 16% per year. The EPS growth is more impressive than the yearly share price gain of 12% over the same period. Therefore, it seems the market has become relatively pessimistic about the company.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

NYSE:EGP Past and Future Earnings April 16th 2020
NYSE:EGP Past and Future Earnings April 16th 2020

We know that EastGroup Properties has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, EastGroup Properties's TSR for the last 5 years was 110%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

While it's never nice to take a loss, EastGroup Properties shareholders can take comfort that , including dividends, their trailing twelve month loss of 1.5% wasn't as bad as the market loss of around 6.2%. Longer term investors wouldn't be so upset, since they would have made 16%, each year, over five years. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. It's always interesting to track share price performance over the longer term. But to understand EastGroup Properties better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with EastGroup Properties (including 2 which is shouldn't be ignored) .

We will like EastGroup Properties better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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.