Yahoo Finance Does Verint Systems's (NASDAQ:VRNT) Share Price Gain of 67% Match Its Business Performance?
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While Verint Systems Inc. (NASDAQ:VRNT) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 11% in the last quarter. But don't let that distract from the very nice return generated over three years. To wit, the share price did better than an index fund, climbing 67% during that period.
See our latest analysis for Verint Systems
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).
Verint Systems was able to grow its EPS at 381% per year over three years, sending the share price higher. This EPS growth is higher than the 19% average annual increase in the share price. So it seems investors have become more cautious about the company, over time. Of course, with a P/E ratio of 51.78, the market remains optimistic.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Verint Systems has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Verint Systems's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's good to see that Verint Systems has rewarded shareholders with a total shareholder return of 17% in the last twelve months. That gain is better than the annual TSR over five years, which is 2.6%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on Verint Systems it might be wise to click here to see if insiders have been buying or selling shares.
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 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.
