Partner Communications (NASDAQ:PTNR) offers shareholders a respectable 3-year CAGR of 25%, up 7.2% in the past week alone
By buying an index fund, you can easily approximately match the market return. But many of us dare to dream of bigger returns and build a portfolio ourselves. Just take a look at Partner Communications Company Ltd. (NASDAQ:PTNR), which rose 95% over three years, well beating the market return of 59% (excluding dividends).
Last week proved lucrative for investors at Partner Communications, so let’s see if fundamentals drove the company’s three-year performance.
See our latest analysis for partner communications
To quote Buffett, “Ships will circumnavigate the globe, but the Flat Earth Society will prosper. There will continue to be wide gaps between price and value in the market…’ An imperfect but simple way to examine how a company’s market perception has changed is to compare the evolution of earnings by action (EPS) with action price movement.
In three years of share price growth, Partner Communications has gone from loss to profitability. This would generally be seen as a positive, so we expect the stock price to rise.
The graph below illustrates the evolution of EPS over time (reveal the exact values by clicking on the image).
Dive deeper into key Partner Communications metrics by viewing this interactive graph of Partner Communications revenue, revenue, and cash flow.
A different perspective
We are pleased to report that Partner Communications shareholders received an 84% year-over-year total shareholder return. This gain is better than the five-year annual TSR, which is 8%. Therefore, it seems that the sentiment around the company has been positive lately. Someone with an optimistic outlook might see the recent improvement in TSR as indicating that the company itself is improving over time. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. For example, we found 1 warning sign for partner communications which you should be aware of before investing here.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of companies that we believe will increase their profits.
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.