Update: PQ Group Holdings (NYSE:PQG) Stock Gained 11% In The Last Year
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. To wit, the PQ Group Holdings Inc. (NYSE:PQG) share price is 11% higher than it was a year ago, much better than the market return of around 5.9% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow PQ Group Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
See our latest analysis for PQ Group Holdings
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over the last twelve months, PQ Group Holdings actually shrank its EPS by 16%. This means it's unlikely the market is judging the company based on earnings growth. Therefore, it seems likely that investors are putting more weight on metrics other than EPS, at the moment.
We think that the revenue growth of 9.2% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling PQ Group Holdings stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
PQ Group Holdings boasts a total shareholder return of 11% for the last year. And the share price momentum remains respectable, with a gain of 10% in the last three months. This suggests the company is continuing to win over new investors. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.
PQ Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
