What Type Of Returns Would Hilton Grand Vacations'(NYSE:HGV) Shareholders Have Earned If They Purchased Their SharesThree Years Ago?

It is a pleasure to report that the Hilton Grand Vacations Inc. (NYSE:HGV) is up 48% in the last quarter. But that doesn’t help the fact that the three year return is less impressive. After all, the share price is down 21% in the last three years, significantly under-performing the market.

View our latest analysis for Hilton Grand Vacations There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Hilton Grand Vacations saw its EPS decline at a compound rate of 46% per year, over the last three years. This fall in the EPS is worse than the 8% compound annual share price fall. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term.

With a P/E ratio of 110.33, it’s fair to say the market sees a brighter future for the business. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growthNYSE:HGV Earnings Per Share Growth January 13th 2021

This free interactive report on Hilton Grand Vacations’ earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

The last twelve months weren’t great for Hilton Grand Vacations shares, which cost holders 6.2%, while the market was up about 25%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period.

However, the loss over the last year isn’t as bad as the 7% per annum loss investors have suffered over the last three years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. It’s always interesting to track share price performance over the longer term.

But to understand Hilton Grand Vacations better, we need to consider many other factors. Case in point: We’ve spotted 4 warning signs for Hilton Grand Vacations you should be aware of, and 1 of them shouldn’t be ignored. If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.

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