Yahoo Finance If You Had Bought REX American Resources (NYSE:REX) Stock Three Years Ago, You Could Pocket A 56% Gain Today
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One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, the REX American Resources Corporation (NYSE:REX) share price is up 56% in the last three years, clearly besting than the market return of around 41% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 13%.
Check out our latest analysis for REX American Resources
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).
REX American Resources was able to grow its EPS at 4.5% per year over three years, sending the share price higher. This EPS growth is lower than the 16% average annual increase in the share price. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. It is quite common to see investors become enamoured with a business, after a few years of solid progress.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on REX American Resources's earnings, revenue and cash flow.
A Different Perspective
We're pleased to report that REX American Resources shareholders have received a total shareholder return of 13% over one year. That gain is better than the annual TSR over five years, which is 5.8%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before deciding if you like the current share price, check how REX American Resources scores on these 3 valuation metrics.
We will like REX American Resources 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.
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.
