The one-year returns for Adtalem Global Education's (NYSE:ATGE) shareholders have been favorable, yet its earnings growth was even better
Adtalem Global Education Inc. ATGE | 74.95 74.95 | +2.26% 0.00% Pre |
While Adtalem Global Education Inc. (NYSE:ATGE) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 13% in the last quarter. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. In that time we've seen the stock easily surpass the market return, with a gain of 41%.
The past week has proven to be lucrative for Adtalem Global Education investors, so let's see if fundamentals drove the company's one-year performance.
Check out our latest analysis for Adtalem Global Education
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.
During the last year Adtalem Global Education grew its earnings per share (EPS) by 277%. It's fair to say that the share price gain of 41% did not keep pace with the EPS growth. So it seems like the market has cooled on Adtalem Global Education, despite the growth. Interesting.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Adtalem Global Education has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.
A Different Perspective
We're pleased to report that Adtalem Global Education shareholders have received a total shareholder return of 41% over one year. That gain is better than the annual TSR over five years, which is 1.8%. 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. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
We will like Adtalem Global Education 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 American exchanges.
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.