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The FTI Consulting (NYSE:FCN) Share Price Has Gained 227%, So Why Not Pay It Some Attention?

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Simply Wall St
·3 min read
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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of FTI Consulting, Inc. (NYSE:FCN) stock is up an impressive 227% over the last five years. Meanwhile the share price is 2.8% higher than it was a week ago.

Check out our latest analysis for FTI Consulting

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).

Over half a decade, FTI Consulting managed to grow its earnings per share at 32% a year. So the EPS growth rate is rather close to the annualized share price gain of 27% per year. This indicates that investor sentiment towards the company has not changed a great deal. In fact, the share price seems to largely reflect the EPS growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

NYSE:FCN Past and Future Earnings, March 18th 2020
NYSE:FCN Past and Future Earnings, March 18th 2020

It is of course excellent to see how FTI Consulting has grown profits over the years, but the future is more important for shareholders. This free interactive report on FTI Consulting's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that FTI Consulting has rewarded shareholders with a total shareholder return of 59% in the last twelve months. That gain is better than the annual TSR over five years, which is 27%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on FTI Consulting it might be wise to click here to see if insiders have been buying or selling shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.