The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Iris Clothings Limited (NSE:IRISDOREME) share price is up 35% in the last year, clearly besting the market return of around 3.5% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Iris Clothings hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Iris Clothings

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.

Iris Clothings was able to grow EPS by 6.1% in the last twelve months. The share price gain of 35% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on Iris Clothings's earnings, revenue and cash flow.

A Different Perspective

Iris Clothings shareholders should be happy with the total gain of 35% over the last twelve months. Unfortunately the share price is down 5.2% over the last quarter. Shorter term share price moves often don't signify much about the business itself. Is Iris Clothings cheap compared to other companies? These 3 valuation measures might help you decide.

Of course Iris Clothings 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 IN 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 editorial-team@simplywallst.com. 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.