Posted on October 9, 2024
The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) share price is up 47% in the last 1 year, clearly besting the market return of around 30% (not including dividends). So that should have shareholders smiling. On the other hand, longer term shareholders have had a tougher run, with the stock falling 19% in three years.
After a strong gain in the past week, it’s worth seeing if longer term returns have been driven by improving fundamentals.
View our latest analysis for Great Lakes Dredge & Dock
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 Great Lakes Dredge & Dock grew its earnings per share, moving from a loss to a profit.
When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.
We think that the revenue growth of 12% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
earnings-and-revenue-growth
We know that Great Lakes Dredge & Dock has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think Great Lakes Dredge & Dock will earn in the future (free profit forecasts).
A Different Perspective
We’re pleased to report that Great Lakes Dredge & Dock shareholders have received a total shareholder return of 47% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 2% per year), it would seem that the stock’s performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Great Lakes Dredge & Dock is showing 2 warning signs in our investment analysis , and 1 of those can’t be ignored…
