O-I Glass (NYSE:OI) delivers shareholders strong 32% CAGR over 3 years, surging 5.5% in the last week alone
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. For example, the O-I Glass, Inc. (NYSE:OI) share price has soared 129% in the last three years. How nice for those who held the stock! It's also up 8.3% in about a month. But the price may well have benefitted from a buoyant market, since stocks have gained 3.5% in the last thirty days.
Since it's been a strong week for O-I Glass shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for O-I Glass
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.
O-I Glass became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
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 O-I Glass has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at O-I Glass' financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that O-I Glass shareholders have received a total shareholder return of 80% over the last year. That's better than the annualised return of 7% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 3 warning signs we've spotted with O-I Glass .
Of course O-I Glass 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 American 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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