Yahoo Finance Golden Entertainment (NASDAQ:GDEN) shareholder returns have been impressive, earning 175% in 3 years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. To wit, the Golden Entertainment, Inc. (NASDAQ:GDEN) share price has flown 175% in the last three years. That sort of return is as solid as granite. It's also up 24% in about a month.
Since it's been a strong week for Golden Entertainment shareholders, let's have a look at trend of the longer term fundamentals.
Check out our latest analysis for Golden Entertainment
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
Golden Entertainment became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Golden Entertainment has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Golden Entertainment's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
While it's certainly disappointing to see that Golden Entertainment shares lost 16% throughout the year, that wasn't as bad as the market loss of 22%. Longer term investors wouldn't be so upset, since they would have made 9%, each year, over five years. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. It's always interesting to track share price performance over the longer term. But to understand Golden Entertainment better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Golden Entertainment you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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.
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