We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. For example, the REGENXBIO Inc. (NASDAQ:RGNX) share price is up a whopping 384% in the last three years, a handsome return for long term holders. On top of that, the share price is up 16% in about a quarter. But this could be related to the strong market, which is up 8.5% in the last three months.
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
REGENXBIO became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that REGENXBIO has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on REGENXBIO's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We're pleased to report that REGENXBIO rewarded shareholders with a total shareholder return of 38% over the last year. That falls short of the 69% it has made, for shareholders, each year, over three years. Is REGENXBIO cheap compared to other companies? These 3 valuation measures might help you decide.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.