Yahoo Finance Journey Energy (TSE:JOY) Shareholders Have Enjoyed An Impressive 258% Share Price Gain
Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Journey Energy Inc. (TSE:JOY) share price has soared 258% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 88% gain in the last three months. Unfortunately the longer term returns are not so good, with the stock falling 16% in the last three years.
See our latest analysis for Journey Energy
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. 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.
Journey Energy went from making a loss to reporting a profit, in the last year.
The result looks like a strong improvement to us, so we're not surprised the market likes the growth. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
It is of course excellent to see how Journey Energy has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Journey Energy stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's nice to see that Journey Energy shareholders have received a total shareholder return of 258% over the last year. There's no doubt those recent returns are much better than the TSR loss of 3% per year over five years. 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. It's always interesting to track share price performance over the longer term. But to understand Journey Energy better, we need to consider many other factors. Case in point: We've spotted 6 warning signs for Journey Energy you should be aware of, and 2 of them make us uncomfortable.
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 CA exchanges.
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. 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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