Air Transport Services Group’s (NASDAQ:ATSG) CAGR of 12% outpaced company earnings growth over the same five-year period

When you buy and hold a stock for the long term, you definitely want it to provide a positive return. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Airline Services Group, Inc. (NASDAQ:ATSG) The stock price is up 73% in the past five years, less than the market’s return. Last year was disappointing, with the stock price falling 7.3% during that time.

After a strong gain last week, it’s worth seeing if longer-term returns have been driven by improving fundamentals.

To paraphrase Benjamin Graham: in the short term, the market is a voting machine, but in the long term, it is a weighing machine. An imperfect but reasonable way to gauge changing sentiment around a company is to compare earnings per share (EPS) with the stock price.

In five years of share price growth, Air Transport Services Group has gone from loss to profitability. This is widely believed to be a real bright spot, so we would expect to see an increase in the stock price.

You can see below how the EPS has evolved over time (find out the exact values ​​by clicking on the image).

NasdaqGS: ATSG Earnings Per Share Growth December 22, 2021

It’s probably worth noting that we saw significant insider buying in the last quarter, which we view as a positive. That said, we believe earnings and revenue growth trends are even more important factors to consider. This free The Air Transport Services Group Earnings, Revenue and Cash Flow Interactive Report is a great place to start if you want to dig deeper into the stock.

A different perspective

While the broader market gained around 19% last year, Air Transport Services Group shareholders lost 7.3%. Even good stock prices sometimes drop, but we want to see improvements in a company’s fundamentals before we get too interested. On the positive side, long-term shareholders have made money, with a gain of 12% per year over half a decade. It could be that the recent selloff is an opportunity, so it may be worth checking the fundamentals for signs of a long-term growth trend. It is always interesting to follow the evolution of the share price over the long term. But to better understand Air Transport Services Group, we need to consider many other factors. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for Air Transport Services Group (1 of which makes us a little uncomfortable!) that you should know.

Air Transport Services Group isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

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.

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