If You Had Bought WideOpenWest (NYSE:WOW) Shares A Year Ago You'd Have Earned 259% Returns
Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the WideOpenWest, Inc. (NYSE:WOW) share price had more than doubled in just one year - up 259%. On top of that, the share price is up 49% in about a quarter. Looking back further, the stock price is 111% higher than it was three years ago.
Check out our latest analysis for WideOpenWest
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.
Over the last twelve months, WideOpenWest actually shrank its EPS by 16%.
This means it's unlikely the market is judging the company based on earnings growth. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.
Revenue was pretty flat year on year, but maybe a closer look at the data can explain the market optimism.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It is of course excellent to see how WideOpenWest has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling WideOpenWest stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that WideOpenWest rewarded shareholders with a total shareholder return of 259% over the last year. That gain actually surpasses the 28% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting WideOpenWest on your watchlist. It's always interesting to track share price performance over the longer term. But to understand WideOpenWest better, we need to consider many other factors. Take risks, for example - WideOpenWest has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.
But note: WideOpenWest 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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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