Kirby (NYSE:KEX) shareholder returns have been , earning 16% in 1 year
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. To wit, the Kirby Corporation (NYSE:KEX) share price is 16% higher than it was a year ago, much better than the market decline of around 9.6% (not including dividends) in the same period. So that should have shareholders smiling. Zooming out, the stock is actually down 1.1% in the last three years.
The past week has proven to be lucrative for Kirby investors, so let's see if fundamentals drove the company's one-year performance.
See our latest analysis for Kirby
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).
During the last year Kirby grew its earnings per share, moving from a loss to a profit.
When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.
However the year on year revenue growth of 24% would help. We do see some companies suppress earnings in order to accelerate revenue growth.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We know that Kirby has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Kirby stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
It's nice to see that Kirby shareholders have received a total shareholder return of 16% over the last year. That gain is better than the annual TSR over five years, which is 0.2%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Kirby better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Kirby you should know about.
For those who like to find winning investments this free list of growing 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 US exchanges.
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This 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.
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