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Yahoo
3 days ago
- Business
- Yahoo
Those who invested in Novartis (VTX:NOVN) five years ago are up 46%
The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But Novartis AG (VTX:NOVN) has fallen short of that second goal, with a share price rise of 14% over five years, which is below the market return. But if you include dividends then the return is market-beating. Meanwhile, the last twelve months saw the share price rise 1.4%. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, Novartis managed to grow its earnings per share at 15% a year. The EPS growth is more impressive than the yearly share price gain of 3% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Novartis has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Novartis the TSR over the last 5 years was 46%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Novartis' TSR for the year was broadly in line with the market average, at 5.0%. We should note here that the five-year TSR is more impressive, at 8% per year. Although the share price growth has slowed, the longer term story points to a business well worth watching. 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. Take risks, for example - Novartis has 1 warning sign we think you should be aware of. For those who like to find winning investments this free list of undervalued 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 Swiss exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Investing in BJ's Restaurants (NASDAQ:BJRI) three years ago would have delivered you a 69% gain
By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger returns, and build a portfolio ourselves. For example, the BJ's Restaurants, Inc. (NASDAQ:BJRI) share price is up 69% in the last three years, clearly besting the market return of around 40% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 27%. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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. BJ's Restaurants was able to grow its EPS at 188% per year over three years, sending the share price higher. This EPS growth is higher than the 19% average annual increase in the share price. So it seems investors have become more cautious about the company, over time. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on BJ's Restaurants' earnings, revenue and cash flow. We're pleased to report that BJ's Restaurants shareholders have received a total shareholder return of 27% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 10% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. For instance, we've identified 2 warning signs for BJ's Restaurants that you should be aware of. Of course BJ's Restaurants 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 American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Investors who have held Ascom Holding (VTX:ASCN) over the last year have watched its earnings decline along with their investment
Ascom Holding AG (VTX:ASCN) shareholders should be happy to see the share price up 15% in the last month. But that's small comfort given the dismal price performance over the last year. Specifically, the stock price slipped by 54% in that time. So the bounce should be viewed in that context. It may be that the fall was an overreaction. While the stock has risen 12% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Unhappily, Ascom Holding had to report a 79% decline in EPS over the last year. The share price fall of 54% isn't as bad as the reduction in earnings per share. So despite the weak per-share profits, some investors are probably relieved the situation wasn't more difficult. You can see below how EPS has changed over time (discover the exact values by clicking on the image). Dive deeper into Ascom Holding's key metrics by checking this interactive graph of Ascom Holding's earnings, revenue and cash flow. Ascom Holding shareholders are down 53% for the year (even including dividends), but the market itself is up 5.0%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Ascom Holding better, we need to consider many other factors. Even so, be aware that Ascom Holding is showing 2 warning signs in our investment analysis , you should know about... For those who like to find winning investments this free list of undervalued 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 Swiss exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Investors in SBS Transit (SGX:S61) have seen returns of 22% over the past year
On average, over time, stock markets tend to rise higher. This makes investing attractive. But not every stock you buy will perform as well as the overall market. Unfortunately for shareholders, while the SBS Transit Ltd (SGX:S61) share price is up 10% in the last year, that falls short of the market return. On the other hand, longer term shareholders have had a tougher run, with the stock falling 2.8% in three years. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. 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. During the last year SBS Transit grew its earnings per share (EPS) by 0.9%. The share price gain of 10% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It might be well worthwhile taking a look at our free report on SBS Transit's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of SBS Transit, it has a TSR of 22% for the last 1 year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. SBS Transit shareholders have received returns of 22% over twelve months (even including dividends), which isn't far from the general market return. That gain looks pretty satisfying, and it is even better than the five-year TSR of 3% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. It's always interesting to track share price performance over the longer term. But to understand SBS Transit better, we need to consider many other factors. For example, we've discovered 2 warning signs for SBS Transit (1 shouldn't be ignored!) that you should be aware of before investing here. For those who like to find winning investments this free list of undervalued 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 Singaporean exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Should You Forget Coca-Cola? Why You Might Want to Buy This Unstoppable Growth Stock Instead.
Coca-Cola is one of the dominant consumer staples companies. But it's not the only one, and its stock is looking a little expensive today. Another famous name -- Hershey -- offers a high yield and attractive valuation. 10 stocks we like better than Coca-Cola › Coca-Cola (NYSE: KO) is a great business, but that doesn't mean it is a great stock to own. In fact, to paraphrase famous value investor Benjamin Graham, overpaying for a great company can turn it into a bad investment. If you are considering this consumer staples giant, here's why you might be better off buying something completely different. Coca-Cola makes beverages. In fact, it is one of the largest beverage makers on the planet, with a distribution network that is top-notch, a powerful marketing team, and strong R&D skills. As a business, it is highly attractive. But what about as an investment? Right now, Coca-Cola's price-to-sales, price-to-earnings, and price-to-book value ratios are all above their five-year averages. It is hard to escape the fact that the stock is expensive today. If you bought it and held it for long enough, you'd probably end up OK, but overpaying could lead to some near-term trepidation if the stock's valuation reverts back toward the mean. If you are seeking a stock that looks attractively priced, you'll be better off with The Hershey Company (NYSE: HSY). Despite material cost headwinds, this confection maker is still growing its business. That speaks to a potentially bright future if its valuation metrics return to their longer-term averages. Starting with the stock price, Hershey's shares have fallen around 45% from the all-time high they reached in 2023. That has pushed the dividend yield up to a historically high 3.6%. The stock's price-to-sales, price-to-earnings, and price-to-book value ratios are all below their five-year averages. Essentially, Hershey looks cheap while Coca-Cola looks expensive. There's a reason, of course. Hershey is facing a severe cost headwind thanks to the massive increase in the price of cocoa. Although revenue is expected to grow at least 2% in 2025, the company's adjusted earnings are projected to fall in the mid-30% range. Investors are reacting accordingly and selling the stock. But that's an opportunity for long-term growth investors. Indeed, the current headwinds haven't stopped Hershey from growing its business. It has recently added the Sour Strips brand to its confection operation and has agreed to buy LesserEvil, which will expand its presence in the salty snack category. In other words, this food maker is taking the long view even as it deals with adversity. That, plus a strong balance sheet, should reassure investors that the currently struggling business will rebound once the cocoa market becomes more rational. To be fair, cocoa comes from trees, so it could take a little while for commodity prices to rationalize. There's probably no rush to buy Hershey's stock. However, acting now gets you in the door and allows you to collect a historically high yield while you await better days. And you'll get to benefit from the growth via acquisition that's being hidden by the market's cocoa concerns. If you wait too long, meanwhile, you could miss out entirely on this unstoppable growth stock. It's probably better to be a little early than miss out because you wait too long. Before you buy stock in Coca-Cola, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Coca-Cola wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Hershey. The Motley Fool has positions in and recommends Hershey. The Motley Fool has a disclosure policy. Should You Forget Coca-Cola? Why You Might Want to Buy This Unstoppable Growth Stock Instead. was originally published by The Motley Fool
