Passive investing in index funds can generate returns that are about the same as the overall market. However, investors can increase their returns by choosing and owning stocks in companies that are outperforming the market. Caleres Co., Ltd. (NYSE:CAL) stock is up 61% from a year ago, far better than the market return of around 24% (not including dividends) over the same period. If it can maintain that outperformance over time, investors will do very well. Looking even further back, the stock is up 39% from where he was three years ago.
So let’s assess the underlying fundamentals over the past year, to see if they have kept pace with shareholder returns.
Check out our latest analysis for Caleres.
To paraphrase Benjamin Graham, in the short term the market is a voting machine, but in the long term it is a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can learn how investor attitudes to a company have changed over time.
In fact, Caleres’s earnings per share decreased by 3.2% over the last year.
In some cases, companies may sacrifice EPS in the short term for long-term profits. In that case, you may be able to find other good points. Since changes in EPS don’t seem to correlate with changes in share price, it’s worth looking at other metrics.
We’re skeptical that the 0.8% dividend yield will attract buyers to the stock. Unfortunately, Caleres is down 4.9% in 12 months. Therefore, fundamental indicators do not provide a clear explanation for stock price increases.
The company’s revenue and profit (over time) are depicted in the image below (click to see the exact numbers).
We know that Caleres has improved its earnings over the past three years, but what does the future hold? If you’re thinking of buying or selling Caleres stock, check out this. free Detailed report on balance sheet.
different perspective
We’re pleased to report that Caleres shareholders have received a total shareholder return of 63% over one year. Of course, this includes dividends. The stock’s performance appears to be improving recently, as the 1-year TSR is better than his 5-year TSR (the latter at 9% p.a.). Given the share price momentum remains strong, it might be worth taking a closer look at the stock to make sure you don’t miss out. I think it’s very interesting to look at stock price over the long term as an indicator of business performance. But to really gain insight, you need to consider other information as well.Case in point: we discovered 1 warning sign for Caleres you should know.
of course Caleres may not be the best stock to buy.So you might want to see this free A collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
