Latest news with #stockpickers
Yahoo
12 hours ago
- Business
- Yahoo
If EPS Growth Is Important To You, Johnson Matthey (LON:JMAT) Presents An Opportunity
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Johnson Matthey (LON:JMAT). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Recognition must be given to the that Johnson Matthey has grown EPS by 54% per year, over the last three years. Growth that fast may well be fleeting, but it should be more than enough to pique the interest of the wary stock pickers. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Johnson Matthey's EBIT margins are flat but, worryingly, its revenue is actually down. Suffice it to say that is not a great sign of growth. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. View our latest analysis for Johnson Matthey Fortunately, we've got access to analyst forecasts of Johnson Matthey's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting. Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. Of course, we can never be sure what insiders are thinking, we can only judge their actions. Shareholders in Johnson Matthey will be more than happy to see insiders committing themselves to the company, spending UK£234k on shares in just twelve months. This, combined with the lack of sales from insiders, should be a great signal for shareholders in what's to come. We also note that it was the CEO & Director, Liam Condon, who made the biggest single acquisition, paying UK£134k for shares at about UK£13.42 each. Johnson Matthey's earnings per share have been soaring, with growth rates sky high. Growth-minded people will be intrigued by the incredible movement in EPS growth. And indeed, it could be a sign that the business is at an inflection point. If this these factors intrigue you, then an addition of Johnson Matthey to your watchlist won't go amiss. You still need to take note of risks, for example - Johnson Matthey has 4 warning signs (and 1 which is a bit concerning) we think you should know about. Keen growth investors love to see insider activity. Thankfully, Johnson Matthey isn't the only one. You can see a a curated list of British companies which have exhibited consistent growth accompanied by high insider ownership. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
Times
3 days ago
- Business
- Times
Wait a minute before you sack your fund manager
I f the football world were to follow in the footsteps of investment funds, you would no longer see suited and booted managers on the sidelines of many pitches. Instead, there would be a machine standing in the technical area, gesturing frantically to the players and swearing at the referee. Active fund managers (human stockpickers who run an investment fund) have fallen out of favour. Many investors now prefer tracker funds, cheaper alternatives that track an index without a person at the helm. Personally, I like a mix of the two. The bulk — about 80 per cent — of my portfolio is in a low-cost global tracker fund, and the rest is split between two individual companies (which are free to invest in), one active fund and one investment trust (which is actively managed).
Yahoo
09-05-2025
- Business
- Yahoo
If EPS Growth Is Important To You, Foxtons Group (LON:FOXT) Presents An Opportunity
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Foxtons Group (LON:FOXT). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business. We check all companies for important risks. See what we found for Foxtons Group in our free report. Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. That makes EPS growth an attractive quality for any company. Recognition must be given to the that Foxtons Group has grown EPS by 39% per year, over the last three years. Growth that fast may well be fleeting, but it should be more than enough to pique the interest of the wary stock pickers. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The music to the ears of Foxtons Group shareholders is that EBIT margins have grown from 6.7% to 12% in the last 12 months and revenues are on an upwards trend as well. Both of which are great metrics to check off for potential growth. The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image. View our latest analysis for Foxtons Group The trick, as an investor, is to find companies that are going to perform well in the future, not just in the past. While crystal balls don't exist, you can check our visualization of consensus analyst forecasts for Foxtons Group's future EPS 100% free. Investors are always searching for a vote of confidence in the companies they hold and insider buying is one of the key indicators for optimism on the market. Because often, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions. Not only did Foxtons Group insiders refrain from selling stock during the year, but they also spent UK£121k buying it. That paints the company in a nice light, as it signals that its leaders are feeling confident in where the company is heading. Zooming in, we can see that the biggest insider purchase was by Independent Non-Executive Director John Callaway for UK£32k worth of shares, at about UK£0.64 per share. Foxtons Group's earnings per share growth have been climbing higher at an appreciable rate. Most growth-seeking investors will find it hard to ignore that sort of explosive EPS growth. And may very well signal a significant inflection point for the business. If this these factors intrigue you, then an addition of Foxtons Group to your watchlist won't go amiss. Now, you could try to make up your mind on Foxtons Group by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry. Keen growth investors love to see insider activity. Thankfully, Foxtons Group isn't the only one. You can see a a curated list of British companies which have exhibited consistent growth accompanied by high insider ownership. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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
