If You Had Bought Enova International (NYSE:ENVA) Stock Three Years Ago, You Could Pocket A 71% Gain Today
One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, Enova International, Inc. (NYSE:ENVA) shareholders have seen the share price rise 71% over three years, well in excess of the market return (40%, not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 4.6%.
View our latest analysis for Enova International
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 three years of share price growth, Enova International achieved compound earnings per share growth of 46% per year. The average annual share price increase of 19% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time. We'd venture the lowish P/E ratio of 8.38 also reflects the negative sentiment around the stock.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It is of course excellent to see how Enova International has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Enova International's financial health with this free report on its balance sheet.
A Different Perspective
Enova International provided a TSR of 4.6% over the last twelve months. 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 3.4% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. Before spending more time on Enova International it might be wise to click here to see if insiders have been buying or selling shares.
Of course Enova International may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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.
