Best Buy Price Matches

Best Buy Price  Matches

Best Buy Price  Matches Does Apartment Investment And Management's (NYSE:AIV) Share Price Gain Of 44% Match Its Business Performance?

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But in our experience, buying the right stocks can give your wealth a significant boost. For example, the Apartment Investment and Management Company (NYSE:AIV) share price is up 44% in the last five years, slightly above the market return. Also positive is the 14% share price rise over the last year.
 See our latest analysis for Apartment Investment and Management
 Best Buy Price  MatchesTo paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
 Over half a decade, Apartment Investment and Management managed to grow its earnings per share at 45% a year. The EPS growth is more impressive than the yearly share price gain of 7.6% over the same period. So it seems the market isn't so enthusiastic about the stock these days. The reasonably low P/E ratio of 8.45 also suggests market apprehension.
 The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

 NYSE:AIV Past and Future Earnings, September 4th 2019
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 We know that Apartment Investment and Management has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
What About Dividends?
 Best Buy Price  Matches It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Apartment Investment and Management, it has a TSR of 76% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Buy Price It's good to see that Apartment Investment and Management has rewarded shareholders with a total shareholder return of 22% in the last twelve months. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 12% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. If you would like to research Apartment Investment and Management in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
 If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
 Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

 Best Buy Price  Matches We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.