Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Apollo Medical Holdings, Inc. (NASDAQ:AMEH) share price is 54% higher than it was a year ago, much better than the market return of around 36% (not including dividends) in the same period. So that should have shareholders smiling. However, the longer term returns haven't been so impressive, with the stock up just 14% in the last three years.
View our latest analysis for Apollo Medical Holdings
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.
During the last year Apollo Medical Holdings saw its earnings per share (EPS) increase strongly. While that particular rate of growth is unlikely to be sustained for long, it is still remarkable. We are not surprised the share price is up. We're real advocates of letting inflection points like this guide our research as stock pickers.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
A Different Perspective
We're pleased to report that Apollo Medical Holdings rewarded shareholders with a total shareholder return of 54% over the last year. That gain actually surpasses the 5% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Apollo Medical Holdings on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Apollo Medical Holdings better, we need to consider many other factors. To that end, you should be aware of the 4 warning signs we've spotted with Apollo Medical Holdings .
Apollo Medical Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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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