For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. For example, the Paylocity Holding Corporation (NASDAQ:PCTY) share price is up a whopping 386% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. It's also good to see the share price up 36% over the last quarter.
While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.
See our latest analysis for Paylocity Holding
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 five years of share price growth, Paylocity Holding achieved compound earnings per share (EPS) growth of 66% per year. This EPS growth is higher than the 37% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. Of course, with a P/E ratio of 147.02, the market remains optimistic.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
NasdaqGS:PCTY Earnings Per Share Growth September 28th 2022
We know that Paylocity Holding has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.
A Different Perspective
While it's never nice to take a loss, Paylocity Holding shareholders can take comfort that their trailing twelve month loss of 13% wasn't as bad as the market loss of around 21%. Longer term investors wouldn't be so upset, since they would have made 37%, each year, over five years. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. It's always interesting to track share price performance over the longer term. But to understand Paylocity Holding better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Paylocity Holding .
Of course Paylocity Holding 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 US exchanges.
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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.
对许多人来说,投资股市的主要目的是获得惊人的回报。而最高质量的公司可以看到它们的股价大幅上涨。例如,PayLocity控股公司纳斯达克(Sequoia Capital:PCTY)股价在过去五年里上涨了386%,对于长期投资者来说,这是一笔可观的回报。如果这不能让你考虑长期投资,我们不知道还有什么会。上个季度股价上涨了36%,这也是件好事。
虽然过去一周该公司的五年回报率有所下降,但让我们来看看基本业务的近期趋势,看看收益是否一致。
查看我们对PayLocity Holding的最新分析
不可否认,市场有时是有效的,但价格并不总是反映潜在的商业表现。评估围绕一家公司的情绪变化的一个有缺陷但合理的方法是将每股收益(EPS)与股价进行比较。
在股价增长的五年中,PayLocity Holding实现了每股收益(EPS)每年66%的复合增长。这一每股收益增幅高于该公司股价年均37%的增幅。因此,这些天市场对该股的热情似乎不那么高。当然,在市盈率为147.02的情况下,市场仍然乐观。
下图描述了EPS是如何随着时间的推移而变化的(通过单击图像来揭示确切的值)。
纳斯达克:PCTY每股收益增长2022年9月28日
我们知道PayLocity Holding最近提高了利润,但它会增加收入吗?这免费显示分析师收入预测的报告应该会帮助你弄清楚每股收益的增长是否可以持续。
不同的视角
虽然亏损从来都不是好事,但PayLocity Holding的股东们可以感到欣慰的是,他们过去12个月的13%的亏损并没有市场上21%左右的亏损那么糟糕。较长期的投资者不会如此沮丧,因为他们在五年内每年会获得37%的收益。可能该业务只是面临一些短期问题,但股东应密切关注基本面。跟踪股价的长期表现总是很有趣的。但为了更好地理解PayLocity Holding,我们需要考虑许多其他因素。为此,您应该意识到1个警告标志我们发现了PayLocity Holding。
当然了PayLocity Holding可能不是最值得购买的股票。所以你可能想看看这个免费成长型股票的集合。
请注意,本文引用的市场回报反映了目前在美国交易所交易的股票的市场加权平均回报。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。