The last three months have been tough on Lantheus Holdings, Inc. (NASDAQ:LNTH) shareholders, who have seen the share price decline a rather worrying 32%. But that doesn't change the fact that the returns over the last three years have been very strong. Indeed, the share price is up a very strong 125% in that time. After a run like that some may not be surprised to see prices moderate. Only time will tell if there is still too much optimism currently reflected in the share price.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During three years of share price growth, Lantheus Holdings achieved compound earnings per share growth of 4.3% per year. This EPS growth is lower than the 31% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did three years ago. That's not necessarily surprising considering the three-year track record of earnings growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It might be well worthwhile taking a look at our free report on Lantheus Holdings's earnings, revenue and cash flow.
A Different Perspective
Pleasingly, Lantheus Holdings's total shareholder return last year was 39%. That gain actually surpasses the 31% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Lantheus Holdings on your watchlist. Before deciding if you like the current share price, check how Lantheus Holdings scores on these 3 valuation metrics.
Of course Lantheus Holdings 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.
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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.