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Introducing Rightmove (LON:RMV), A Stock That Climbed 69% In The Last Five Years

Stock pickers are generally looking for stocks that will outperform the broader market. And in our experience, buying the right stocks can give your wealth a significant boost. For example, long term Rightmove plc (LON:RMV) shareholders have enjoyed a 69% share price rise over the last half decade, well in excess of the market decline of around 6.8% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 11% in the last year.

See our latest analysis for Rightmove

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

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During five years of share price growth, Rightmove achieved compound earnings per share (EPS) growth of 7.8% per year. This EPS growth is lower than the 11% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
earnings-per-share-growth

This free interactive report on Rightmove's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We've already covered Rightmove's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Rightmove's TSR of 78% over the last 5 years is better than the share price return.

A Different Perspective

We're pleased to report that Rightmove shareholders have received a total shareholder return of 11% over one year. Having said that, the five-year TSR of 12% a year, is even better. Before forming an opinion on Rightmove you might want to consider these 3 valuation metrics.

We will like Rightmove better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.