Advertisement
U.S. markets closed
  • S&P Futures

    5,206.00
    -8.75 (-0.17%)
     
  • Dow Futures

    39,194.00
    -29.00 (-0.07%)
     
  • Nasdaq Futures

    18,170.75
    -60.75 (-0.33%)
     
  • Russell 2000 Futures

    2,047.20
    -2.60 (-0.13%)
     
  • Crude Oil

    82.56
    -0.16 (-0.19%)
     
  • Gold

    2,164.00
    -0.30 (-0.01%)
     
  • Silver

    25.30
    +0.03 (+0.14%)
     
  • EUR/USD

    1.0875
    -0.0001 (-0.01%)
     
  • 10-Yr Bond

    4.3400
    +0.0360 (+0.84%)
     
  • Vix

    14.33
    -0.08 (-0.56%)
     
  • dólar/libra

    1.2725
    -0.0004 (-0.03%)
     
  • USD/JPY

    149.2010
    +0.1030 (+0.07%)
     
  • Bitcoin USD

    65,999.35
    -1,624.23 (-2.40%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,722.55
    -4.87 (-0.06%)
     
  • Nikkei 225

    39,439.14
    -301.30 (-0.76%)
     

Investors in REX American Resources (NYSE:REX) have made a decent return of 82% over the past three years

You can receive the average market return by buying a low-cost index fund. But if you pick the right individual stocks, you could make more than that. Notably, the REX American Resources Corporation (NYSE:REX) share price has gained 82% in three years, which is better than the average market return. The bad news is that the share price seems to lack positive momentum recently, since it has dropped 11% in the last year.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

View our latest analysis for REX American Resources

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.

REX American Resources was able to grow its EPS at 122% per year over three years, sending the share price higher. This EPS growth is higher than the 22% average annual increase in the share price. So it seems investors have become more cautious about the company, over time.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
earnings-per-share-growth

It is of course excellent to see how REX American Resources has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

REX American Resources shareholders are down 11% over twelve months, which isn't far from the market return of -11%. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. If the stock price has been impacted by changing sentiment, rather than deteriorating business conditions, it could spell opportunity. If you would like to research REX American Resources in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Advertisement