Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the National Vision Holdings, Inc. (NASDAQ:EYE) share price has soared 111% in the last year. Most would be very happy with that, especially in just one year! In more good news, the share price has risen -1.4% in thirty days. And shareholders have also done well over the long term, with an increase of 54% in the last three years.

View our latest analysis for National Vision Holdings

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.

National Vision Holdings went from making a loss to reporting a profit, in the last year.

The company was close to break-even last year, so earnings per share of US$0.45 isn't particularly stand out. But judging by the share price, the market is very pleased with the milestone of reaching profitability. Inflection points like this can be a great time to take a closer look at a company.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of National Vision Holdings' earnings, revenue and cash flow.

A Different Perspective

Pleasingly, National Vision Holdings' total shareholder return last year was 111%. That gain actually surpasses the 15% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with National Vision Holdings (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

National Vision Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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. 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.

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