Investing in Air Transport Services Group (NASDAQ: ATSG) five years ago would have gotten you 76%

The main goal of investing for the long term is to make money. Better yet, you would like to see the stock price rise more than the market average. Unfortunately for the shareholders, while the Airline Services Group, Inc. The stock price (NASDAQ: ATSG) has risen 76% over the past five years, less than the market performance. Zooming in, the headline is actually down 2.3% over the past year.

So let’s take a look and see if the long-term performance of the business has been in line with the progress of the underlying business.

See our latest analysis for Air Transport Services Group

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying business performance. One way to look at how market sentiment has changed over time is to look at the interaction between a company’s stock price and its earnings per share (EPS).

In five years, Air Transport Services Group has managed to increase its earnings per share by 21% per year. EPS growth is more impressive than the 12% annual share price gain over the same period. So it looks like the market isn’t as enthusiastic about the title these days.

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

earnings per share growth

We know Air Transport Services Group has improved its results lately, but will it increase its revenue? You could check that out free report showing analysts’ earnings forecasts.

A different perspective

While the broader market gained around 28% last year, Air Transport Services Group shareholders lost 2.3%. Even good stock prices drop sometimes, but we want to see improvements in the fundamentals of a business, before we get too interested. Longer-term investors wouldn’t be so upset, as they would have gained 12% each year over five years. The recent sell-off may be an opportunity, so it may be worth checking the fundamentals for signs of a long-term growth trend. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To this end, you should inquire about the 4 warning signs we identified with Air Transport Services Group (including 1 which is significant).

Sure, you might find a fantastic investment 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 market-weighted average returns of stocks currently traded on the US stock exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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