Introducing Watches of Switzerland Group (LON:WOSG), A Stock That Climbed 19% In The Last Year
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Watches of Switzerland Group plc (LON:WOSG) share price is up 19% in the last year, clearly besting the market decline of around 15% (not including dividends). That's a solid performance by our standards! Watches of Switzerland Group hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for Watches of Switzerland 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.
During the last year Watches of Switzerland Group grew its earnings per share, moving from a loss to a profit.
When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).
We think that the revenue growth of 4.8% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on Watches of Switzerland Group's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Watches of Switzerland Group boasts a total shareholder return of 19% for the last year. And the share price momentum remains respectable, with a gain of 17% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for Watches of Switzerland Group that you should be aware of.
But note: Watches of Switzerland Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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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