Yahoo Finance New Oriental Education & Technology Group (NYSE:EDU) grows 4.5% this week, taking one-year gains to 140%
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the New Oriental Education & Technology Group Inc. (NYSE:EDU) share price has soared 140% in the last 1 year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 15% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 8.5% in 90 days). On the other hand, longer term shareholders have had a tougher run, with the stock falling 40% in three years.
Since it's been a strong week for New Oriental Education & Technology Group shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for New Oriental Education & Technology Group
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.
New Oriental Education & Technology Group went from making a loss to reporting a profit, in the last year.
When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.
However the year on year revenue growth of 42% would help. We do see some companies suppress earnings in order to accelerate revenue growth.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
New Oriental Education & Technology Group is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.
A Different Perspective
We're pleased to report that New Oriental Education & Technology Group shareholders have received a total shareholder return of 140% over one year. There's no doubt those recent returns are much better than the TSR loss of 0.2% 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. Before deciding if you like the current share price, check how New Oriental Education & Technology Group scores on these 3 valuation metrics.
Of course New Oriental Education & Technology Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
