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The TriNet Group (NYSE:TNET) Share Price Has Gained 256%, So Why Not Pay It Some Attention?

Simply Wall St
·3 min read

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. Long term TriNet Group, Inc. (NYSE:TNET) shareholders would be well aware of this, since the stock is up 256% in five years. In more good news, the share price has risen -0.06% in thirty days. We note that TriNet Group reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.

Check out our latest analysis for TriNet Group

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, TriNet Group achieved compound earnings per share (EPS) growth of 66% per year. This EPS growth is higher than the 29% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.

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 TriNet Group has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling TriNet Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that TriNet Group has rewarded shareholders with a total shareholder return of 33% in the last twelve months. That's better than the annualised return of 29% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. For instance, we've identified 3 warning signs for TriNet Group (1 is concerning) that you should be aware of.

We will like TriNet Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, 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.

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. 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@simplywallst.com.