Announcing: Addus HomeCare (NASDAQ:ADUS) Stock Increased An Energizing 222% In The Last Five Years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. Long term Addus HomeCare Corporation (NASDAQ:ADUS) shareholders would be well aware of this, since the stock is up 222% in five years. The last week saw the share price soften some 3.4%.

Check out our latest analysis for Addus HomeCare

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 five years of share price growth, Addus HomeCare achieved compound earnings per share (EPS) growth of 13% per year. This EPS growth is slower than the share price growth of 26% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that Addus HomeCare has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Addus HomeCare will grow revenue in the future.

A Different Perspective

Addus HomeCare provided a TSR of 6.1% over the last twelve months. But that was short of the market average. On the bright side, the longer term returns (running at about 26% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Addus HomeCare has 2 warning signs we think you should be aware of.

We will like Addus HomeCare better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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. 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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