Yahoo Finance Did You Miss North American Palladium's (TSE:PDL) Impressive 262% Share Price Gain?
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It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For example, the North American Palladium Ltd. (TSE:PDL) share price has soared 262% in the last three years. How nice for those who held the stock! Also pleasing for shareholders was the 89% gain in the last three months.
Check out our latest analysis for North American Palladium
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.
During three years of share price growth, North American Palladium moved from a loss to profitability. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It is of course excellent to see how North American Palladium has grown profits over the years, but the future is more important for shareholders. This free interactive report on North American Palladium's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that North American Palladium shareholders have received a total shareholder return of 92% over the last year. And that does include the dividend. Notably the five-year annualised TSR loss of 38% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. Is North American Palladium cheap compared to other companies? These 3 valuation measures might help you decide.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.