The one-year returns for DoubleVerify Holdings' (NYSE:DV) shareholders have been , yet its earnings growth was even better

·3 min read

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the DoubleVerify Holdings, Inc. (NYSE:DV) share price is up 16% in the last 1 year, clearly besting the market decline of around 12% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! DoubleVerify Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

Check out our latest analysis for DoubleVerify Holdings

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.

DoubleVerify Holdings was able to grow EPS by 34% in the last twelve months. It's fair to say that the share price gain of 16% did not keep pace with the EPS growth. So it seems like the market has cooled on DoubleVerify Holdings, despite the growth. Interesting. Of course, with a P/E ratio of 115.35, the market remains optimistic.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

We know that DoubleVerify Holdings has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

A Different Perspective

DoubleVerify Holdings shareholders should be happy with the total gain of 16% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 37% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand DoubleVerify Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with DoubleVerify Holdings .

But note: DoubleVerify Holdings 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 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.

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