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Those who invested in Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) a year ago are up 56%

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  • LOMA

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, the Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) share price is up 56% in the last 1 year, clearly besting the market return of around 32% (not including dividends). That's a solid performance by our standards! Zooming out, the stock is actually down 35% in the last three years.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

See our latest analysis for Loma Negra Compañía Industrial Argentina Sociedad Anónima

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.

During the last year Loma Negra Compañía Industrial Argentina Sociedad Anónima grew its earnings per share (EPS) by 219%. This EPS growth is significantly higher than the 56% increase in the share price. So it seems like the market has cooled on Loma Negra Compañía Industrial Argentina Sociedad Anónima, 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).

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

We know that Loma Negra Compañía Industrial Argentina Sociedad Anónima 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

It's nice to see that Loma Negra Compañía Industrial Argentina Sociedad Anónima shareholders have gained 56% (in total) over the last year. That's including the dividend. That certainly beats the loss of about 9% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Loma Negra Compañía Industrial Argentina Sociedad Anónima that you should be aware of before investing here.

But note: Loma Negra Compañía Industrial Argentina Sociedad Anónima 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 US exchanges.

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.

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