IBEX's (NASDAQ:IBEX) investors will be pleased with their notable 83% return over the last year
The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the IBEX Limited (NASDAQ:IBEX) share price is up 83% in the last 1 year, clearly besting the market decline of around 22% (not including dividends). So that should have shareholders smiling. IBEX hasn't been listed for long, so it's still not clear if it is a long term winner.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
View our latest analysis for IBEX
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...' 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 the last year IBEX grew its earnings per share (EPS) by 160%. It's fair to say that the share price gain of 83% did not keep pace with the EPS growth. So it seems like the market has cooled on IBEX, despite the growth. Interesting.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
We know that IBEX 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.
A Different Perspective
IBEX shareholders should be happy with the total gain of 83% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 43% in that time. This suggests the company is continuing to win over new investors. Before forming an opinion on IBEX you might want to consider these 3 valuation metrics.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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