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The RAK Petroleum (OB:RAKP) Share Price Is Up 40% And Shareholders Are Holding On

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It hasn't been the best quarter for RAK Petroleum plc (OB:RAKP) shareholders, since the share price has fallen 20% in that time. On the other hand the share price is higher than it was three years ago. Arguably you'd have been better off buying an index fund, because the gain of 40% in three years isn't amazing.

Check out our latest analysis for RAK Petroleum

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.

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During three years of share price growth, RAK Petroleum moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.

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

OB:RAKP Past and Future Earnings, July 16th 2019
OB:RAKP Past and Future Earnings, July 16th 2019

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

A Different Perspective

We're pleased to report that RAK Petroleum rewarded shareholders with a total shareholder return of 22% over the last year. That gain actually surpasses the 12% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting RAK Petroleum on your watchlist. You could get a better understanding of RAK Petroleum's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NO 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.