These days it's easy to simply buy an index fund, and your returns should (roughly) match the market.  But one can do better than that by picking better than average stocks (as part of a diversified portfolio).  To wit, the G-III Apparel Group, Ltd. (NASDAQ:GIII) share price is 33% higher than it was a year ago, much better than the market return of around 10% (not including dividends) in the same period.  So that should have shareholders smiling.    It is also impressive that the stock is up 32% over three years, adding to the sense that it is a real winner.    

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.  

See our latest analysis for G-III Apparel Group

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.

Over the last twelve months G-III Apparel Group went from profitable to unprofitable.  While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up.  It may be that the company has done well on other metrics.

We think that the revenue growth of 4.6% could have some investors interested.  We do see some companies suppress earnings in order to accelerate revenue growth.    

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

NasdaqGS:GIII Earnings and Revenue Growth November 30th 2023

We consider it positive that insiders have made significant purchases in the last year.  Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business.   You can see what analysts are predicting for G-III Apparel Group in this interactive graph of future profit estimates.

A Different Perspective

We're pleased to report that G-III Apparel Group shareholders have received a total shareholder return of 33% over one year.    That certainly beats the loss of about 5% per year over the last half decade.  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.        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.   Case in point: We've spotted   1 warning sign for G-III Apparel Group  you should be aware of.    

G-III Apparel Group 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 American 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.