Yahoo Finance The 33% return this week takes Marathon Digital Holdings' (NASDAQ:MARA) shareholders five-year gains to 587%
We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can see their share prices grow by huge amounts. Don't believe it? Then look at the Marathon Digital Holdings, Inc. (NASDAQ:MARA) share price. It's 587% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. Better yet, the share price has risen 33% in the last week. It really delights us to see such great share price performance for investors.
Since it's been a strong week for Marathon Digital Holdings shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for Marathon Digital Holdings
To 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.
During the five years of share price growth, Marathon Digital Holdings moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Marathon Digital Holdings' earnings, revenue and cash flow.
A Different Perspective
We're pleased to report that Marathon Digital Holdings shareholders have received a total shareholder return of 105% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 47% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 4 warning signs for Marathon Digital Holdings that you should be aware of before investing here.
But note: Marathon Digital Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 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.
