Update: GT Steel Construction Group (HKG:8402) Stock Gained 16% In The Last Year

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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. For example, the GT Steel Construction Group Limited (HKG:8402) share price is up 16% in the last year, clearly besting than the market return of around -19% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! GT Steel Construction Group hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for GT Steel Construction Group

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 GT Steel Construction Group saw its earnings per share (EPS) increase strongly. We don't think the exact number is a good guide to the sustainable growth rate, but we do think this sort of increase is impressive. So we're unsurprised to see the share price gaining ground. We're real advocates of letting inflection points like this guide our research as stock pickers.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

SEHK:8402 Past and Future Earnings, June 6th 2019
SEHK:8402 Past and Future Earnings, June 6th 2019

It might be well worthwhile taking a look at our free report on GT Steel Construction Group's earnings, revenue and cash flow.

A Different Perspective

GT Steel Construction Group shareholders should be happy with the total gain of 16% over the last twelve months. And the share price momentum remains respectable, with a gain of 21% in the last three months. This suggests the company is continuing to win over new investors. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

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 HK 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.