If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. To wit, the Yangzhou Guangling District Taihe Rural Micro-finance Company Limited (HKG:1915) share price is 14% higher than it was a year ago, much better than the market return of around 1.3% (not including dividends) in the same period. That's a solid performance by our standards! We'll need to follow Yangzhou Guangling District Taihe Rural Micro-finance for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
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.
Yangzhou Guangling District Taihe Rural Micro-finance was able to grow EPS by 3.6% in the last twelve months. This EPS growth is significantly lower than the 14% increase in the share price. This indicates that the market is now more optimistic about the stock.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on Yangzhou Guangling District Taihe Rural Micro-finance's earnings, revenue and cash flow.
A Different Perspective
It's nice to see that Yangzhou Guangling District Taihe Rural Micro-finance shareholders have gained 14% over the last year. We regret to report that the share price is down 1.5% over ninety days. Shorter term share price moves often don't signify much about the business itself. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Yangzhou Guangling District Taihe Rural Micro-finance by clicking this link.
Yangzhou Guangling District Taihe Rural Micro-finance 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 HK 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 email@example.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.