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These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. For example, the Newgen Software Technologies Limited (NSE:NEWGEN) share price is up 24% in the last year, clearly besting than the market return of around -5.5% (not including dividends). So that should have shareholders smiling. We’ll need to follow Newgen Software Technologies for a while to get a better sense of its share price trend, since it hasn’t been listed for particularly long.
View our latest analysis for Newgen Software Technologies
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.
During the last year Newgen Software Technologies grew its earnings per share (EPS) by 38%. This EPS growth is significantly higher than the 24% increase in the share price. So it seems like the market has cooled on Newgen Software Technologies, despite the growth. Interesting.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that Newgen Software Technologies has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
It’s nice to see that Newgen Software Technologies shareholders have gained 25% over the last year, including dividends. Unfortunately the share price is down 6.6% over the last quarter. Shorter term share price moves often don’t signify much about the business itself. Before spending more time on Newgen Software Technologies it might be wise to click here to see if insiders have been buying or selling shares.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN 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.